west australian

Sage shrugs at Takeovers Panel ruling on CopperCo

18th June 2009, 7:00 WST



Cape Lambert Iron Ore boss Tony Sage has shrugged off a Takeovers Panel ruling that will force him to launch takeover bids for four junior mining companies or drastically reduce $21 million worth of shareholdings.

The panel said yesterday it had upheld a ruling by the Australian Securities & Investments Commission not to grant Cape Lambert relief with regards to shareholdings in Tianshan Goldfields (25.5 per cent), Corvette Resources (35 per cent), Niplats Australia (40.1 per cent) and Buka Gold (47.3 per cent).

Cape Lambert is poised to acquire the shareholdings, worth $21 million, as part of its buyout of the collapsed CopperCo. The deal is expected to settle by the end of this month.

But under Australia’s Corporations Law, investors with a more than 20 per cent stake in a publicly listed company have to launch a takeover bid, barring a few exceptions. Without ASIC relief, Cape Lambert may have to cut its shareholdings below 20 per cent, or launch takeover bids. Cape Lambert had appealed against the ASIC decision not to grant relief. Mr Sage said yesterday he was not concerned at the panel’s ruling. Cape Lambert shares eased 0.5¢ to 32.5¢.

PETER KLINGER