Ron Brierley may use Murchison Metals as listed vehicle for...

Ron Brierley may use Murchison Metals as listed vehicle for other interests

by: Sarah-Jane Tasker
From:The Australian
December 31, 201212:00AM

CORPORATE raider Ron Brierley could use Murchison Metals as a listed vehicle for other interests after his investment company said it was unlikely to participate in a proposed share buyback, one month after taking control of the shell company.

Sir Ron's Mercantile Investment Company moved late last month to oust the directors of the failed mining company after raising concerns about the $7.6 million cost to wind up Murchison.

Speculation at the time had suggested Sir Ron was looking to control the junior resources shell, but he said his company supported the return of capital to shareholders as soon as possible.

Murchison is being wound up after it sold its interest in failed infrastructure and mine projects to joint venture partner Mitsubishi for about $325m.

Liquidators were expected to be appointed to Murchison in February or March.

Mercantile executive director Gabriel Radzyminski, who was appointed as a director of Murchison at the end of November after Mercantile took control, told shareholders on Friday a review of potential capital management options had been completed.

Mr Radzyminski said the board intended to seek shareholder approval for an off-market equal-access share buyback, expected to be priced in the range of 4c to 4.2c. Shares in the company closed 2.4 per cent lower at 4c on Friday.

"Mercantile Investment Company has indicated, subject to the final terms of the proposed buyback, that it is unlikely to tender any shares into the buyback," Mr Radzyminski said.

He said Murchison's other major shareholder, South Korean steelmaker Posco, which has about 13 per cent, was yet to form a view on the proposed buyback.

Mercantile, which is Murchison's major shareholder with about 17 per cent, had written to the junior's managing director Greg Martin last month to requisition a meeting of the firm to remove Mr Martin and chairman Ken Scott-Mackenzie because of what it saw as an excessive level of expenses incurred by the company.

But the two men left voluntarily after securing advice from Sir Ron that his company supported a cash distribution to shareholders.

http://www.theaustralian.com.au/business/mining-energy/ron-brierley-may-use-murchison-metals-as-listed-vehicle-for-other-interests/story-e6frg9df-1226545437723