Refer Link:
http://www.fareastcapital.com.au/imagesDB/newsletter/WeeklyComm30Nov2024.pdfThis is what Warwick Grigor has to report:
Palace coup at Lindian
There has been a board change at Lindian Resources (LIN) following the withdrawal of the resolution to re-elect the chairman, and the founder, Asimwe Kabunga. What is surprising is that Asimwe is the largest shareholder with about 25% of the issued capital in close hands. Earlier this year we saw the departure of Alistair Stephens, the CEO. Now, with the chairman gone, who is steering the ship?
Technically, Asimwe resigned the day before the AGM, when he saw that the numbers were stacked against him. The ASX release used pro-forma wording saying he had resigned to pursue other interests but we all know that there is a backstory. So, the Company has just entered a period of instability.
It is unlikely that Asimwe will just ride off into the sunset. He has too much at stake. The remaining board members don’t have the reach in Malawi and Guinea without him, to pursue the project, so there has to be further developments. Is this a plot by Chinese shareholders to secure control of one of the best rare earths project in the world? Maybe?
All that Asimwe has to do is find a white knight to pick up 10% on-market, at these depressed prices, and we will see a counter revolutionary coup. A new party will only do it on an agreed commercial basis, suggesting that there will probably be a clean out of existing management in favour of people who will be more aggressive. That could be very good for the share price.
An incoming party will have to be mindful to not act in concert so as to avoid breaching the takeover code, but that is not a major stumbling block. At the very least the shareholders have shaken the pot. They have expressed their concerns in a demonstrable fashion but haven’t provided a solution for the future. You can be certain that the jackals will be circling, so watch this space for further developments. It could become very interesting.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
I have my opinion on what may occur. Will consider sharing with you next week.
