Phosphate resources battle heats up

TAKEOVER target Phosphate Resources Limited has hit back at a letter takeover suitor Asset Backed Holdings sent to PRL shareholders on October 12.

Among other things, the Asset Backed letter claims PRL directors were paid $997,530 in 2002-03 and that directors’ remuneration for 2003-04 had not been reported. It also says PRL has liabilities of more than $21 million.

PRL company secretary Peter Torre said the Christmas Island phosphate miner had sent a letter to its shareholders reinforcing its earlier advice to them not to accept the Asset Backed offer and putting its side to some of the claims.

Mr Torre said also that PRL was considering legal action over the Asset Backed letter and had instructed its solicitors Corrs Chambers Westgarth to consider the matter.

PRL’s letter says that of the $997,530 in directors’ fees, $121,430 had been paid to three Asset Backed directors.

It says the 2002-03 directors’ fees also included the salaries, superannuation and directors fees for five executive directors of PRL and related companies Indian Ocean Stevedores and Phosphate Resources Singapore. PRL non-executive directors are paid $25,000 a year.

Mr Torre told WA Business News that directors’ remuneration for 2003-04 would be reported in the company’s forthcoming annual report.

While Asset Backed referred to the phosphate miner’s more than $21 million liabilities, the PRL letter says Asset Backed’s statement "ignores total assets of $35.7 million".

The PRL letter also says the company’s total liabilities have reduced by $3 million from June 30 2003.

Asset Backed, which had extended its takeover offer to October 29 has further extended it to November 12.

The company has also dropped the 90 per cent condition from its takeover bid.

It now reports holding 38.8 per cent of PRL’s stock.