Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of Flinders Mines increased by more than 33% on Thursday after the company said that it would seek shareholder approval to de-list from the ASX, to avoid orders from the Takeovers Panel.
A number of Flinders shareholders turned to the Takeovers Panel, after Flinders applied to de-list from the ASX following a strategic review to maximise shareholder value.
As part of the de-listing, Flinders was proposing to undertake an on-market buy-back and an unmarketable parcels sales process, which would be funded by a loan facility by Flinders’ major shareholder TIO NZ. This loan facility would be repaid through a proposed non-renounceable, pro-rata rights issue following the buy-back.
Shareholders raised concerns around TIO NZ’s plans to acquire further control over voting shares in Flinders, and saying they had not been given sufficient time or information to consider the merits of the transactions.
In an effort to avoid orders from the Takeovers Panel, Flinders said that it would now seek formal ASX approval for a revised process to de-list, involving an equal-access scheme off-market buy-back of 10% of the shares, at a fixed price of 7.5c each, with a pro-rata scale back.
This will take the place of the previously proposed on-market buy-back.
In place of Flinders’ proposed rights issue to repay the TIO NZ loan funding the buy-back, TIO NZ will extend the terms of the proposed loan, and would not vote shares representing an increase to its current 55.56% holding for a period of 18 months following the off-market buy-back.
The de-listing from the ASX would also be subject to shareholder approvals.
Flinders shares were trading at a high of 5.1c a share on Thursday, up from a low of 3.7c a share.