Thanks Mango22. I appreciate your interest.
I hold a modest parcel of MAH shares. I was doing some research with a view to possibly increasing my interest.
My focus is on Amman Mineral Contractors (Singapore) Pte Ltd, which I understand holds a 44.27% interest in MAH (i.e. 954,064,924 shares).
My interest is in the extent to which Amman may have the potential to control MAH even though it does not hold 50.1% of MAH shares on issue.
By way of background, you may recall that under the Alliance Agreement, Amman has the right to appoint two directors to the MAH Board.
Upon the resignation of Messrs Ramlie and Sidarto last year, Amman proposed that Mr David Gibbs (a director of Amman) be appointed to the Board.
The nomination was accepted by the Board of MAH. The other Board position was not taken up by Amman, resulting in a reduction of the Board from seven to six members. I assume that Amman can exercise its right to appoint a second Board member at any time, but will stand corrected on this.
So with an interest of 44.27%, Amman obviously has the ability to block any special resolution.
Moreover, Amman would potentially have the ability to greatly influence any ordinary resolution, simply because 100% of shareholders don't vote at a meeting. For example, at the last AGM, in excess of 500M shares did not vote.
So my prelim assessment of Amman is that it does have the potential to both materially control and influence MAH, regardless of the fact that it does not hold 50.1%. So I need to further consider the implications of this prior to deciding whether to increase my share parcel.
My apologies for the wordy response and once again, thanks for your interest Mango22.
These are my views only and definitely should not taken as investment advice.
Regards
Stretguy.
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