A panel has not been convened yet or decided whether to commence a proceeding, so at the moment it’s a piece of paper lodged at a government department.
I noticed recently that the panel declined to commence proceedings brought by Bulls Eye Mining Ltd and Bulls Eye is actually the subject company of a TO by RED. TBR is not involved in any takeover so it seems like an illegitimate use of the TO panels time and resources to me. If there are deficiencies with substantial holder notices one would think ASIC and ASX would have the power to remedy them. I think it’s unlikely that this application will get of the ground.
I’ll be watching to see if it does. I’ve had a quick look and there have been cases where the TO plan has made orders to have shares vested to the Commonwealth (ie ASIC) for sale, with the proceeds being returned to the owners. I’d say if it ever got that far you’d see some big lawyer guns take the floor of at the proceedings and there would be applications made for review panels to be formed.
It’s still very hypothetical but what do people think would be the effect on the share price if large parcels of stock suddenly came on market for sale.
Would this provide liquidity and new opportunity to get on the register, hence driving the price up from its undervalued state or would it drive the price down due to uncertainty and fear? I suppose it would depend on how far the panel was prepared to reach into the affairs of the company. The panel I would think would need to be considerate of the effect of minority and non-aligned shareholders when and/or if they were ever to make declarations on unacceptable circumstances.Esh
TBR Price at posting:
$6.61 Sentiment: Hold Disclosure: Held
