Keep the fight up people... with more coverage like this the...

Keep the fight up people... with more coverage like this the momentum is clearly shifting our way... and the facts are starting to paint the Directors in the light they deserve!

Congrats also to Bryan Frith for having the courage to report on what amounts to the overt corporate theft IMO.

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Wah Nam short

WAH Nam International's bid to mop up the remainder of iron ore hopeful Brockman Resources has been gaining little traction with the minority shareholders to date.

Wah Nam secured 55.3 per cent majority ownership and control of Brockman last year with a controversial scrip takeover offer. Wah Nam started with 22.6 per cent of Brockman but the board believed from the outset that a wide spread of Asian investors had bought shares ahead of the bid and warehoused them for Wah Nam, in the process bypassing the takeover and disclosure requirements of the Corporations Act.

Brockman failed to persuade the takeovers panel to take action because it was unable to provide conclusive hard evidence to back up its suspicions. But it produced enough to cause the panel concerns in relation to a number of matters, including the coincidence in the timing of purchases and disposals of shares by some of the parties and Wah Nam, the relationships between some of the parties and the unusual funding of some of the acquisitions.

The panel said that it may be able to draw inferences of association of some, or all, of the parties named by Brockman accepted the offer.

Shortly after there was unusually heavy trading in Brockman with many of the parties named by Brockman selling down their holdings, only to be replaced by other Asian investors who then accepted the offer despite the Brockman board's recommendation to reject the bid.

Wah Nam ultimately received acceptances for 32.7 per cent of Brockman of which virtually all came from Asian investors. Australian and New Zealand shareholders overwhelmingly heeded the advice of their directors to reject the offer and accounted for only 1 per cent or so of acceptances.

In December Wah Nam came back with a cash and scrip offer, of $1.50 cash plus 18 of its shares for each Brockman share which valued Brockman shares at $3.03 based on Wah Nam's previous share price of 8.5c -- a premium of 34 per cent to Brockman's then share price of $2.26.

The cash element would partly be funded by the issue of $42 million of shares and $22m of convertible bonds to Ocean Line Holdings, which already owned 6 per cent of the company, a $10m share placement underwritten by Reorient Financial Markets.

This time around the independent directors recommended acceptance, arguing that consolidating all shareholdings into Wah Nam should improve funding options to develop Brockman's Marillana iron ore project.

The independents also said they would accept for their 11.35 per cent shareholding, subject to FIRB approval of the bid, Wah Nam shareholder approval and completion of the share placement and the issue of shares and convertible bonds to Ocean Line.

To date, shareholders haven't been listening. By January 13, Wah Nam had only lifted its holding marginally to 56.58 per cent and the Hong Kong group was forced to extend the bid by one month to February 20.

But its holding has since only edged up to 57.64 per cent and Wah Nam must decide by next Friday whether to further extend the bid.

Wah Nam's share price has dropped to 6c, at which price

Brockman shares are valued at $2.58. Brockman shares are selling at $2.10.

Wah Nam shareholder approval for the bid has been obtained and the issue of shares and bond to Ocean Liner has been completed and Wah Nam has now waived the share placement as condition. That means the independents will be required to accept from their 11.35 per cent once FIRB approval is obtained, which would lift Wah Nam's stake to 69 per cent.

But that would still be well below the 80 per cent minimum acceptance condition.

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http://www.theaustralian.com.au/business/opinion/kalahari-acceptances-ensure-a-bid-to-come-for-extract-resources/story-e6frg9kx-1226261271931