David Fickling From: Dow Jones Newswires January 11, 2011 4:22PM
WAH Nam is acting in concert with other local companies in breach of Australian takeover law in its bid for Brockman Resources. The Pilbara iron ore miner made the allegation against the Hong Kong investment company in an appeal to the country's takeovers watchdog.
The Takeovers Panel said that a submission from Brockman alleged "unacceptable circumstances" in the takeover application, and said that Wah Nam had acted in association with Leading Pride, Star Ray International, and Beach Road Shareholders to raise its effective voting stake above the level of Wah Nam's own holdings.
Officials at Wah Nam weren't immediately reachable for comment.
The Panel said that Brockman had asked it to prevent the three other companies from transferring their shares during the takeover period and to stop Wah Nam from declaring its offer unconditional. Brockman also sought orders demanding the divestment of shares acquired in breach of Australia's takeover law, the Panel said.
Wah Nam in November offered $930.6 million in a stock-based bid for Brockman and neighbouring iron ore developer Ferraus.
The company's major assets are a Hong Kong-and-mainland Chinese-based limousine company, its stakes in Brockman and FerrAus, and a copper mine in mainland China.
According to the company's 2009 annual report, it is controlled by Leading Highway, a company registered in the British Virgin Islands and wholly owned by Hong Kong toy manufacturer and investor Cheng Yung Pun.
BRM Price at posting:
$5.24 Sentiment: Buy Disclosure: Held
