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"Keybridge turns screws

KEYBRIDGE Capital is taking further legal action against takeover target Molopo Energy, in which holds an 18.48% share.




Keybridge applied to the Supreme Court of Western Australia on September 11 to force a look at its books after Molopo purchased a 50% share of Orient FRC Ltd in the US for $8.75 million.

At the time Keybridge called the purchase "highly questionable" but has now expanded its original attacks to include five new points it is taking to the court.

It is seeking an injunction against Molopo extending any further funds to Orient; and another restraining the oiler from any transaction that is a "significant change" to its business.

It also wants to institute proceedings against directors responsible for the Orient purchase; has ordered a receiver and manager be appointed by the court over all of Molopo's property; that thejunior appoint another director that resides in Australia.

That last point has been an ongoing problem for Keybridge, which seeks to understand why Molopo's other director Wayne Trumble resigned soon after the Orient purchase.

With only one director currently resident in Australia - Ronnen Rosengart - it has been claimed that Molopo is in violation of Australian law.

Keybridge has also sought to have one of its own directors appointed to replace Trumble.

The firm has sought to understand how and why Molopo valued Orient at $17.5 million, but has not elaborated on why it deems the purchase unwise enough to merit a trip to the Supreme Court.

It believes this is a case of shareholder oppression by Molopo and that these steps are necessary to "preserve the remaining value of Molopo from the inappropriate actions of these directors".

As of this week one of those shareholders is the Commonwealth Bank, which holds 17.35% of shares, just below Keybridge.

Molopo also continues to fight off Aurora Funds Management's attempted takeover, advising shareholders this morning to not do anything about the fund's latest bid, as the oiler says the terms are essentially the same as the old bid. "