Wah Nam to push on with Brockman bid

Wah Nam International says it will proceed with its takeover bid for Brockman Resources, after the Takeovers Panel rejected an application that Wah Nam had acquired Brockman shares in breach of the Corporations Act.

Brockman submitted to the panel on January 10 that a number of major shareholding entities, as well as individual shareholders, were associated subsidiaries of Wah Nam, and therefore in breach of takeovers provisions.

"The panel noted business, family and social connections between certain Brockman
shareholders and loans between some of them which funded the acquisition of
Brockman shares, which concerned the Panel in considering whether or not there
were unacceptable circumstances," a statement released today by the Takeovers Panel said.

"However, the Panel was not satisfied on the material available to it that it could draw the necessary inferences and find the alleged associations."

As part of its investigation, the panel blocked Leading Pride, Star Ray International, Yencon Enterprises, Platinum Investment Holding, Stockholm Limited, Tradewind International, and Ironwood Group from buying or selling any further Brockman shares on January 12.

Individuals Cho Hong Cheen, Chen Pauline, Mo Yang, Wu Wie, Liang Wnechong and Ng Kog Kuang were also subject to the order, which was lifted by the panel's ruling today.

The Hong Kong-listed Wah Nam launched its $932 million takeover bid in November.

The Brockman board has urged its shareholders to reject the bid on concerns relating to the depth of value of Wah Nam's stock, and its lack of operational and development expertise.