Panel rejects Tap application

The Takeovers Panel has rejected an application by Tap Oil claiming its two biggest shareholders had become associated, with the panel refusing to make a declaration of unacceptable circumstances.

Last month, the oil and gas explorer requested the disclosure of details surrounding major shareholders Risco Energy Investments and Chatchai Yenbamroong, and for the pair to be restrained from voting at the company’s annual meeting.

Mr Yenbamroong has a 22.5 per cent stake in the company while Risco has 22.1 per cent, which includes holdings by Suncastle Equities.

The application followed an announcement by Singapore-based Risco that it plans to move a series of resolutions at the meeting – namely the removal of executive chairman James Menzies, non-executive director Peter Mansell and Risco’s existing nominee on the board, Tom Soulsby.

Tap claimed that Mr Yenbamroong and Risco had become associated with each other in contravention of the Corporations Act.

However, the panel said there was not enough evidence to prove the relationship.

“The panel considered that there was not sufficient material to establish that an association had been formed,” the panel said in a letter.

“It was unclear from the materials submitted whether there has been sufficient disclosure of the persons who may have a relevant interest in Risco’s shareholding in Tap.

“The panel considered that it was not desirable in the circumstances to continue making enquiries solely to determine this issue, noting that ASIC has oversight of this area.”

The panel said it will publish its reasons for the decision in due course.

Tap shares were down 1.8 per cent at 5.5 cents each.