The soap opera that has become Durban Roodeport Deep’s takeover of Fijian gold miner Emperor Mines has hit another snag with three Emperor shareholders crying foul to the takeovers panel.
The shareholders, Power Treasure Limited, Phoenix Gold Fund Limited and Floreat Fund Limited allege unacceptable circumstances exist in relation to Emperor’s affairs.
Those unacceptable circumstances include:
The terms of a four for 10 non-renounceable rights issue to be made by Emperor;
The terms of a shortfall agreement between Emperor and a wholly-owned subsidiary of DRD under which DRD has agreed to apply for any shortfall under the rights issue; and
The likely effect of the rights issue and shortfall agreement on control of Emperor.
The shareholders are calling on the Takeovers Panel to order:
A halt to the rights issue;
That Emperor obtain non-associated shareholder approval of the rights issue and the shortfall agreement; and
The rights issue be made renounceable and accessible to all shareholders in Emperor and the rights issue timetable be amended accordingly.
DRD began its Emperor takeover bid earlier this year and extended it at least twice.
Along the way some colourful characters from Kazakhstan jumped on board, taking a 15 per cent stake in Emperor.
Their involvement in the company stalled in August .
According to press reports the three businessmen, Patokh Chodiev, Alexander Mashkevitch and Alijan Ibragimov – who were reported to be under investigation in Belgium for money laundering – joined the likes of Sir Frank Packer and New Zealand stockbroker Jeffrey Reid in taking an interest in the Fijian goldminer.
