Takeovers Panel hands Flinders Mines minority investors win in delisting feud
Stuart McKinnonThe West Australian
Monday, 11 February 2019 12:18PM
Stuart McKinnon
Margo Gould, spokeswoman for Flinders Mines’ minority shareholders, centre, and other minority shareholders.Picture: Danella Bevis
Minority shareholders of Flinders Mines are celebrating after the Takeovers Panel declared unacceptable circumstances in the proposed delisting of the company.
Responding to two applications lodged with it opposing the move last month, the panel advised Monday that the delisting was likely to coerce shareholders to sell their shares into a market that was not sufficiently efficient, competitive and informed.
It said shareholders would not have reasonable time to consider the proposed on-market buy-back announced as part of the delisting, and enough information to assess its merits.
The panel also found shareholders who sold their shares could be denied a reasonable and equal opportunity to participate in benefits accruing to those who bought or retained Flinders shares.
It said it was continuing to consider final orders or undertakings that would enable the delisting to proceed subject to Australian Securities Exchange approval.
The panel will publish details of any final orders or undertakings in due course.
Flinders announced plans to delist in December, citing low levels of liquidity in its trading, difficulty in accessing essential funding and the costs of remaining a listed entity.
The news prompted a 50 per cent fall in its share price and raised the ire of minority shareholders who view the proposal as a ploy by majority shareholder Todd Corporation to squeeze them out without having to pay the type of premium typically associated with a takeover.
Minority shareholder Margo Gould said she was exceedingly happy that the panel had affirmed minority shareholders’ beliefs that Todd Corporation’s push to privatise Flinders was “unacceptable”.
“If Todd Corporation wishes to acquire additional shares in Flinders Mines then they should not be acquired by delisting but bought from minority shareholders at a true price,” she said.
Ms Gould said the board had frustrated and angered minority shareholders for several years and the bid to delist Flinders had confirmed to them that the present board did not act in the best interests of all its shareholders.
Flinders is yet to respond to the panel’s finding.
The panel received two applications last month opposing the delisting of the company. One from its second-biggest shareholder, Chinese-backed entity OCJ, and another individual shareholder, Dubbo-based criminal lawyer Brendon Dunstan.
Flinders shares were up 0.3¢, or 9.38 per cent, to 3.5¢ at 9.05am.
