gandel taken to task over tin stake

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The West Australian Newspaper, Saturday 7-8 May 2011
West Business ? Herd on the Terrace

GANDEL TAKEN TO TASK OVER TIN STAKE

Ian Gandel, of Melbourne's billionaire property family, may want to take some advice from Lynas Corp's Nick Curtis on how to deal with pesky minority shareholders.

Curtis has landed himself in an uncomfortable position after it emerged he would be a big beneficiary from Lynas' decision to sell a non-core multi-metals project to Forge resources, a Curtis-controlled entity.

Gandel, as chairman of Perth tiddler Gippsland, is facing a similar hostile response over a decision to offload a 40 per cent stake in the Heemskirk tin project in Tasmania to newly incorporated company Adobha Resources, of which Gandel is a Director.

Under the terms of the deal, Gippsland will receive $800,000 worth of Adobha shares for the Heemskirk stake.

Gandel, fellow Gippsland director John Dunlop and Gippsland's chief geologist John Chisholm plan to float Adobha this year and Gippsland shareholders will have priority access to IPO stock.
But what has infuriated smaller Gippsland investors, and set chat room Hot Copper alight, is the valuation of the Heemskirk stake.

Stellar Resources, which owns the other 60 per cent of Heemskirk, is thought to have placed a value of $13 million on its interest in the tin project, as reflected by Stellar's $20 million market capitalisation.

In other words, argue angry Gippsland punters, their Heemskirk stake should be worth around $9 million, not $800,000.

"There is a strong suspicion among Hot Copper posters that the main beneficiary of the (Adobha) IPO will be the underwriter" one angry punter told the Bull.

There is no mention in Gippsland announcements whether the Adobha deal will require shareholder consent given the related party issues involved.

The Bull, meanwhile, is still waiting to hear from Gippsland.
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