The Australian Takeovers Panel has decided not to intervene in a bid by shareholders to stop Kasbah Resources Ltd. from going ahead with a A$3.7 million placement to Pala Investments Ltd.
The regulator said Dec. 23 that applicants Lois Lane Investments Pty. Ltd. and Bloom Financial Advice Pty. Ltd. did not provide sufficient evidence to justify the panel making further enquiries.
Lois Lane Investments and Bloom Financial Advice wanted the Takeovers Panel to stop Kasbah from undertaking the placement because the shareholders believe it would give Pala a greater stake in the company than the 19.9% Kasbah claimed it would have.
Pala owns roughly 74% of Asian Mineral Resources Ltd., which recently terminated its planned takeover of Kasbah after certain shareholders disputed the deal and the Australian Federal Court refused to allow the takeover to go ahead.
Lois Lane Investments and Bloom Financial Advice also claim Pala is 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.