This latest RG message is outrageously misleading. It is much more revealing for what it does NOT say.It has been carefully crafted to be as misleading as possible without actually lying.
Of course Kin does not need 90% to approve a delisting vote. No one has said that it does. 90% is the threshold for CA, which is a completely separate matter. 75% is the relevant number here.
Kin says it would be eligible to vote on a delisting resolution:that may be arguable but in any case it is irrelevant. As WT and others have pointed out, there is a second necessary condition of equal importance for delisting to be possible: there must be fewer than 150 holders who have over $500 of stock.As WT has shown, there are nearly 2,000 that have at least that number. Unless over 9/10 of those desert, they can block the vote.As WT notes, this is not a black and white matter- ASX has the power to consider –in context- whether a delisting is desirable, overall, even if the 75%/<150 thresholds are met. I believe ASX would be more likely to take the side of the minorities if it felt that there was a grey area. Kin says a delisting “can” occur irrespective of whether there are more than 150 minority holders. Note the word “can”.I believe the statement to be untrue- but if it is true “can” is very different from “would” and would require extraordinary contortions from ASX for it to breach its own listing rules and guidelines.It is true that I “can” become prime minister- but it’s incredibly unlikely and maybe legally wrong as well. The comment is outrageous and if not a lie it’s very close to being one.
RG’s message here is ENTIRELY about frightening some remaining holders into thinking that 1. delisting is inevitable and then 2: that that would make it almost impossible to trade their shares.The first leg is clearly untrue and the second is a gross exaggeration.
Most importantly of all, this is all a smokescreen, and designed to take people’s eyes off the only really important fight that RG needs to win—whether he can get to 90% in the current bid so he can use the power of compulsory acquisition.CA is the thing that RG is desperate to be able to do.It’s true that delisting would be of some marginal help to RG, as it would slightly reduce reporting requirements—but not by much. I understand that PGH would still be required to report as a Disclosing Entity, which is not much less strict than a listed entity.In any case, all he really wants is to get to 90% so he can force the minorities to accept the bid.Kin must believe that Manipur is not going to accept for its 6%, so he has got to bully at least 3% (out of the 7% minority NOT held by Manipur) to accept be able reach 90%. Until he gets to 90% he can only BLUSTER- he has no power. That is he why he is increasing the pressure through bullying people to accept his crappy bid OFF market, and disguising his tactics by talking only about delisting. Unless he gets 90% he has failed commercially—even if he achieves delisting, which is very unlikely anyway.
DO NOT GIVE INTO THIS BULLYING—it is like D Trump, full of rage and bullish*t. I am amazed that his lawyers have allowed Kin to publish this crap- they should be ashamed. So should the IBC, which has proved to be useless in giving even the smallest guidance to minorities in the last 2 months. The IBC ought to email all holders immediately with some basic FAQ on the status—at least to illuminate the legal aspects. The IBC must not remain silent against such gross distortions by Kin. The IBC should drop the word “independent” from IBC—they are now solely assisting Kin, whether by commission or silence.
RG is hoping that this type of bullying- and it probably won’t be the last- will frighten another or 10m shares to accept off market so he hit the 90% CA threshold and clean up 100%.
Not advice- just a strong opinion!I am no longer a holder- I sold on market at 85c- but I have been watching this saga with increasing anger.
(20min delay)