Shareholders of Kasbah Resources Ltd. have sought the help of the Australian Takeovers Panel to block a last ditch attempt by the Australian tin explorer to give Asian Mineral Resources Ltd. greater control of the company.
The panel on Dec. 20 said it received an application from Lois Lane Investments Pty. Ltd. and Bloom Financial Advice Pty. Ltd. requesting that the regulator stop Kasbah from undertaking a placement to Pala Investments Ltd., which owns roughly 74% of Asian Mineral Resources.
Following news that the planned takeover of Kasbah by Asian Mineral Resources would not go ahead, Kasbah revealed that it would issue Pala Investments 138,133,684 shares at 2.7 Australian cents each to raise roughly A$3.7 million.
The company said it would also undertake a 1-for-6 renounceable rights issue at 2.3 cents per share to all shareholders to raise up to an additional A$2.7 million, in which Pala would also participate to maintain its 19.9% stake.
Lois Lane Investments, which holds an interest of about 0.44% in Kasbah, and Bloom Financial Advice both opposed the takeover by Asian Mineral Resources.
The two companies claim Pala is also associated with Lion Selection Group Ltd., which, through subsidiaries, is a 15.7% shareholder in Kasbah and a 5.1% shareholder in Asian Mineral Resources, and said the placement would breach the 20% takeover threshold of the Corporations Act.
The shareholders want the Takeovers Panel to ban Kasbah from going ahead with the placement or to order Pala to dispose of the shares that would take it over the 20% limit.