The Australian government's Takeovers Panel has orderedcertain shareholders in SovereignGold Co. Ltd. that have been found to be associated to vest theirrespective shareholdings in the Australian Securities and InvestmentsCommission to be sold.
The regulator said July 18 that 10 million shares acquiredby Mounts Bay Investments Pty. Ltd. and 12,901,234 shares acquired by SyracuseCapital Pty Ltd. are to be vested, sold and the proceeds returned to theowners.
The final order was handed down after former directorBrennan Westworth raisedconcerns with the Takeovers Panel over the involvement of certainshareholders in various capital raisings that resulted in them gainingsubstantial stakes in Sovereign as well as seats on the board.
The panel found that Patrick Glovac, Rocco Tassone, CharlesThomas and Applabs Technologies Ltd. are associated "for the purpose ofcontrolling or influencing the composition of Sovereign Gold's board" andthat they had amassed a shareholding of greater than 20%, the takeovers threshold.
Glovac, Tassone and Thomas are all directors of SovereignGold.
Thomas has a relevant interest in about 1.4% of SovereignGold held by Mounts Bay Investments Pty. Ltd., while Tassone has a relevantinterest in roughly 3.9% of Sovereign Gold, held by Syracuse Capital Pty. Ltd.on behalf of the Rocco Tassone Super Fund.
The Takeovers Panel, however, has stayed its final orderafter receiving a request for a review from Westworth, which it will nowconsider.
The associated parties are banned from selling ortransferring their shares in Sovereign Gold until the panel makes a decision.