10/04/2019 - 15:37

Flinders dumps delisting plans

10/04/2019 - 15:37

Bookmark

Save articles for future reference.

Flinders Mines has abandoned its bid to delist from the ASX, following a battle with minority shareholders over the proposal.

Flinders is focused on the development of its Pilbara Iron Ore project.

Flinders Mines has abandoned its bid to delist from the ASX, following a battle with minority shareholders over the proposal.

In a brief statement to the ASX, Flinders executive director David McAdam said the company withdrew its revised delisting application announced on March 19, given the views expressed by shareholders

“The company will now reconsider its future strategy and provide an update to shareholders in due course,” he said.

In December, Flinders proposed to undertake an on-market buyback funded by a loan from its largest shareholder, TIO, which owns approximately 55.6 per cent of Flinders.

TIO is owned by New Zealand’s billionaire Todd family.

After multiple applications to the Takeovers Panel by minority shareholders soon after the announcement, on February 11 the panel declared unacceptable circumstances in the proposed delisting of the iron ore explorer.

The panel said the delisting was likely to coerce Flinders’ shareholders, other than its primary investor, to sell their shares into a market that was not sufficiently efficient, competitive and informed.

Three days later Flinders and the panel struck a new delisting deal, which meant Flinders would longer go ahead with a proposed rights issue to repay a TIO loan, and instead TIO will extend the term of the proposed loan.

TIO would also be barred from increasing its voting power, which is currently 55.56 per cent, from the off-market buy-back for at least 18 months after the buy-back is completed.

It submitted its revised delisting proposal to the ASX on March 19.

Flinders is focused on the development of its Pilbara Iron Ore project, approximately 60 kilometres north-west of the town of Tom Price.

Shares in Flinders were up 10.26 per cent to trade at 4.3 cents each at 3.45pm AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options