Two key figures from the WA Inc. days, Kevin Edwards and Tony Lloyd, have surfaced at the heart of the deal that led to its largest shareholder Asset Backed Holdings’ takeover bid for Christmas Island miner Phosphate Resources Limited.
The PRL board retained Mr Edwards as an adviser to help the company negotiate a new enterprise bargaining agreement with the Union of Christmas Island Workers.
The board then, on Mr Edwards’ recommendation, retained former Rothwells managing director Tony Lloyd to provide further advice on part of the EBA.
PRL company secretary Peter Torre confirmed the involvement of both figures.
One of the key parts of the PRL EBA was that the company issue 19.9 per cent shares to a community trust.
Asset Backed director David Argyle said that share issue plan, which would have diluted Asset Backed’s 34.3 per cent stake in PRL, was one of the triggers for the takeover bid.
“Asset Backed had also requested a position on the board of PRL. That request was not able to be met by PRL,” he said.
The Asset Backed bid came before the PRL board had signed off on the EBA, including the share issue.
With the Asset Backed takeover bid in play the PRL board is not allowed, under Corporations Law, to make such a sizeable share issue.
The involvement of Mr Lloyd and Mr Edwards was highlighted to WA Business News by a PRL shareholder who said he was concerned about the direction of the company.
“It’s been 18 months since the company delivered a dividend,” he said.
