Ukrainian group Palmary Enterprises Ltd has denied having an interest in a mystery 8.1 per cent stake in takeover target Consolidated Minerals Ltd, which has been linked in press reports to a business partner of Palmary president Gennadiy Bogolyubov.
The shares are held by Torbock Holdings and Wadless Holdings, which reportedly are associated with another Ukrainian business executive, Igor Kolomoisky.
The two Ukrainian businessmen control Ukrainian conglomerate Privat Group, which in turn controls ConsMin bidder Palmary.
However Palmary issued a statement today denying that it had an interest in the shares held by Torbock, Wadless or two other mystery shareholders, Trekin Investments and Almanzar Holdings.
"Palmary and Palmary president Gennadiy Bogolyubov, have not interest in CSM shares which CSM indicates are held by Joint Stock Bank ING Bank Ukraine on behalf of Torbock Holdings Ltd, Wadless Holdings Ltd, Trekin Investments Ltd and Almanzar Holdings Ltd," the company said in a statement.
The four entities collectively own 36 million ConsMin shares, or 16.3 per cent, which could be critical to the $1 billion takeover battle between Palmary and Brian Gilbertson's Pallinghurst Resources.
ConsMin last week called on the Australian Securities and Investments Commission for help after it was unable to identify the owners of the shares.
Subsequent investigations unearthed that the Ukrainian branch of ING Bank was holding the stake on behalf of five groups, including Palmary.
Entities that hold more than a five per cent interest in a company must disclose the shareholding to the stock exchange.
"Palmary was not aware that its shareholding through Joint Stock Bank ING Bank Ukraine formed part of the undisclosed shareholding held in Prague," Palmary said.
"Palmary notes that a number of the other holders appear to be companies owned by Ukrainian stock brokers, which hold shares for a range of clients.
"Palmary also notes that it is common business practice in Ukraine that the choice of custodian is generally determined by the broker."
Palmary today said it had initiated discussions with ASIC and the Takeovers Panel in relation to seeking an order for the ConsMin shares held by the other four companies to be frozen until the matter was resolved.
