PERTH (miningweekly.com) – ASX-listed Flinders Mines has postponed the extraordinary general meeting (EGM) planned for January 22 regarding the delisting of the company, after certain shareholders turned to the Takeovers Panel.
Flinders last year applied to delist from the ASX, following a strategic review of the available options to maximise shareholder value, on the back of a number of challenges to progress the Pilbara iron-ore project.
The company said, at the time, that the decision to delist was in the best interest of shareholders, given the lack of capital support from public markets, the low levels of trading liquidity of Flinders shares, concentrated shareholding, the costs associated with maintaining a listing on the ASX, greater potential access to future funding alternatives as an unlisted company, and the company’s material future capital requirements.
In connection with the delisting, Flinders was also 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.
The Takeovers Panel in January received a number of applications from concerned shareholders seeking orders to adjourn the planned shareholders meeting, citing concerns about TIO NZ’s plans to acquire further control over voting shares in Flinders, and saying that shareholders had not been given sufficient time or information to consider the merits of the transactions.
Flinders has now postponed the EGM and the unmarketable parcels sales facility process until the later of February 6, or the date the Takeovers Panel decided not to conduct proceedings, or when proceedings were concluded.