Engineering company RCR Tomlinson Ltd has ended court proceedings against its former major shareholder, the Singapore-based MTQ Corporation Ltd.
Engineering company RCR Tomlinson Ltd has ended court proceedings against its former major shareholder, the Singapore-based MTQ Corporation Ltd.
Engineering company RCR Tomlinson Ltd has ended court proceedings against its former major shareholder, the Singapore-based MTQ Corporation Ltd.
Engineering, subsea equipment and engine component group MTQ, sold its 16.5 per cent stake in RCR last month for $45 million.
Stockbroking firm Hartleys placed the 18.9 million shares with a range of institutional investors at a price of $2.40 per share, representing a big profit for MTQ.
RCR announced today that chairman Raymond Lynch, chief executive John Noordhoek, executive director Charles Birmingham and former director and chief executive John Linden have entered into a confidential deed of settlement and release with MTQ Corporation Limited, MTQ Engine Systems Pty Ltd, MTQ Holdings Pty Ltd, Kim Kok Kuah and Ian Spence, whereby all court proceedings between them have been terminated, with no admission of liability by any party.
The company said the terms of the settlement were not material to RCR.
Last month's sale brought to an end an awkward relationship between the companies, which included MTQ making an unsuccessful takeover offer and opposing RCR's capital raising plans.
RCR has achieved rapid growth in recent years, helped by a spate of acquisitions, with net profit increasing to $17.6 million last year.
However, earnings per share actually fell because of the large volume of share issues used to pay for the acquisitions.