Contemplating what the terms "control" and "ownership" mean in this context is a challenging task for a mug punter like me. Clearly, Tremont own a majority of the resource (50% joint venture and 20% CXX shares). But they do not control the resource as it cannot deliver the CXX portion. The directors and associates would see to that.
To me, Tremont can only gain control if :
- they launch a takeover of CXX as they are at the 20% threshold, or
- CXX sells 1% (or similar) of its share of the resource, or
- they enter into some scheme of arrangement to take "control" of a big parcel of CXX shares without formally buying them.
There could be other scenarios.
What I do not know is whether the latter scenario is permissible under the rules.
Anyway, we long suffering minnows will have to wait and see.
CXX Price at posting:
23.0¢ Sentiment: Hold Disclosure: Held
