The Australian government's Takeovers Panel received an application from minority shareholder Brendon Dunstan to stop Flinders Mines Ltd. from going ahead with its proposed delisting from the ASX.
In the application, Dunstan represented a number of Flinders' shareholders claiming the transaction will give TIO (NZ) Ltd., the indirect subsidiary of The Todd Corp. Ltd., further control of Flinders "in a manner that is contrary to the policy objectives."
Dunstan also said Flinders shareholders were not given sufficient time and information to consider the merits of the proposed transactions, and each of the substantial holding notices lodged by The Todd Corp. was defective.
TIO NZ owns about 55.6% of Flinders and intends to vote in favor of the delisting, according to a Jan. 10 release.
The application is looking to postpone the special meeting or disregard any votes cast by TIO NZ and its associates in relation to the delisting.
Minority shareholders of Flinders had urged regulators to stop the company's proposed delisting from the ASX, which they claim is a ploy by The Todd Corp. to force them out without having to pay premiums generally associated with a takeover.
They wanted regulators to order the vote to delist the company to be made by a special resolution, requiring a 75% majority, rather than an ordinary resolution, requiring a 50% majority.