Wonder what price they would offer for a takeover... still deciding whether takeover is best option, or see long term growth is in omh. Either way I believe share price considerably undervalued.
Bogolyubov attacks OMH merger
January 20, 2009 Article from: The Australian UKRAINIAN billionaire Gennadiy Bogolyubov, the owner of Consolidated Minerals, has hit out at OM Holdings for approving anti-takeover measures which he says don't add value to the company.
By-law changes approved by OMH shareholders at a meeting in Singapore last week include a provision preventing any single investor acquiring more than 20 per cent of the company without making an equal offer to shareholders, and a clause requiring disclosure of interest of more than 5 per cent.
Mr Bogolyubov has a 12 per cent stake in OMH, which controls the Bootu Creek manganese mine in the Northern Territory, and had his votes exercised at the meeting but said shareholders weren't given enough time to digest the motions put to them.
"I would like the board to please clearly explain to shareholders where the value creation is now that the company is wrapped up in certain protections, but has left little or no recourse for interested parties to use the effective powers of ASIC and the Takeovers Panel," Mr Bogolyubov said in a statement yesterday. "You only have to look at OMH's recently falling share price to see that there is little sign of any value creation from the introduced by-laws.
"The OMH board has publicly indicated a willingness to engage with ConsMin as one of its largest shareholders. We support this engagement, with the proviso of us seeing real results that will reflect the creation of shareholder value."
Although OMH is listed on the Australian Securities Exchange, it is incorporated in Bermuda and so did not automatically have the takeover protection mechanisms extended to public companies incorporated in Australia.
OMH's management is concerned that Mr Bogolyubov has been gearing up for a takeover bid -- which he has denied.
Mr Bogolyubov also criticised the voter turnout for the meeting, where 349 shareholders -- representing 81 per cent of OMH's issued capital -- participated.
ConsMin said it would now consider its "overall position to ensure the value of its financial investment in OMH is not further eroded, including the possibility of requisitioning its own special shareholder meeting".
OMH shares rose 5c to close at $1.08 yesterday.
OMH Price at posting:
$1.02 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)