I am part of the top 20 shareholders of TEG and many of my associates have written to the ASX today to ask them to look closely at this situation that is really a source of concern for all of us... I invite you to do the same and write to ASX if you are a TEG shareholder, so we can make sure that we all vote on this deal so we can ask to see all other offers on the table... Here is the message that we have sent that you may use as an example and you can send it by email at the attention of the ASX Secretary:
[email protected]
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To Secretary, Austrialian Securities Exchange,
I have been an important shareholder of TEG (Triangle Energy Limited) for more many years now. I have invested with great hope in this company even if it was a great risk and now I am very concerned because the PPSC sale that the board of directors has presented to us doesn’t go in the best interest of the shareholders.
The board has announced to shareholders at the end of July, that they have entered into a contract to sell the Pase Production Sharing Contract (PPSC) that they have in Indonesia, which is the main asset of the company. This was done without shareholders' approval and they seem to wish to make sure that we do not vote on this... which is not right knowing there is a strange clause mentioned about a break-up fee clause that does not seem to be aligned with clause 5.2 Break fees of ASX regulations.
The break-up fee clause in their agreement is a very unreasonable clause of USD $5 millions penalty to be assessed to TEG if this contract did not go through. This break-up fee is totally excessive because TEG doesn’t have the USD $5 millions in their account if we look at their June 2015 report. The guidelines of ASX regulate that a break-up fee cannot be more than 1% of equity value and this is not the case. There is a problem in this sale and it seems that it is not in the interest of shareholders... the board of directors is not doing this in our interest.
All I am asking in this urgent request, is that ASX assigns the TEG board of directors to put in place the possibility for the shareholders to vote for their approval.
Please dear Secretary, ask the TEG board of directors that shareholders should see the entire deal and any other deals that have been presented to TEG, if there are some. I cannot understand why the directors would sign such a deal without shareholders approval and with an excessive break-up fee clause that creates only insecurities in shareholders mind and prevents them from taking actions.
Thank you for protecting shareholders on this unclear situation.
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Please use this text if you wish and send it to
[email protected] as soon as possible. The more numerous we are, the better it is... because what we need for this PSC is a joint venture deal with another company or a better deal than that which will respect the money we have invested to keep this company alive for many years... I want the board of directors to put all offers on the table so we can take the best one... let's make sure that everything is crystal clear...
(20min delay)