PERTH (miningweekly.com) – The Australian Takeovers Panel has restricted ASX-listed Molopo Energy from spending more than A$175 000 in any one transaction, without the consent of one or more of the panel members.
Suitor Aurora Funds Management has applied to the Takeovers Panel requesting an interim order against Molopo, after the takeover target informed shareholders that not only had it taken full ownership of the Orient oil and gas project, in the US, but it had also transferred ownership of the project over to Drawbridge Holdings in return for a 30% interest in that company.
Molopo obtained full ownership of the Orient project after redeeming its joint venture partner’s shares in Orient, and committing to funding the project in full to the tune of some $21-million.
The Takeovers Panel has ordered that neither Molopo, nor any of its subsidiaries could make a payment or incur or commit to pay more than A$175 000 in a single transaction, or any series of transactions of more than A$175 000 without the prior consent of the panel members.
The interim order will be in place until the Takeovers Panel either issues further orders or makes a determination regarding the proceedings.
A contrite Molopo, meanwhile, informed the ASX that the company would be seeking shareholder approval for the Orient transaction and would be working to satisfy the listing requirements for the ASX as if it were applying for admission to the official ASX list.
The move comes after the ASX warned Molopo that it had turned to the Australian Securities and Investment Commission (ASIC) to determine if Molopo was in breach of the Corporations Act, after Molopo failed to advise the ASX of the Orient transaction and its assumption of full funding obligations at the project, despite constant discussions between the bourse and the company.
The ASX would also continue to suspend Molopo’s shares from trading, until ASIC has completed its investigation.