Minority shareholders of Flinders Mines Ltd. urged regulators to stop the company's proposed delisting from the ASX, which they claim is a ploy by majority shareholder The Todd Corp. Ltd. to force them out without having to pay premiums generally associated with a takeover, The West Australian reported Jan. 4.
They want 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 50% majority, according to the report.
Todd owns about 55% of the company and made two unsuccessful takeover attempts in 2015 and 2016.
The ASX said the proposal can proceed through an ordinary resolution as long as the delisting takes place at least one month after the resolution's approval so shareholders have the opportunity to liquidate their holdings.
Flinders agreed to provide an unmarketable partial sale facility and an on-market buyback for shareholders who want to sell their holdings before the delisting.
A shareholder meeting to vote on the move is scheduled for Jan. 22.