Flinders appeals against Panel’s finding on delisting Stuart...

Flinders appeals against Panel’s finding on delisting
Stuart McKinnonThe West Australian
Wednesday, 13 February 2019 2:53PMStuart McKinnon

Drilling at Flinders Mines’ Pilbara iron ore project.
Flinders Mines is challenging a finding of unacceptable circumstances by the Takeovers Panel in connection with its proposed delisting.

The company has applied to the Panel for it to review its decision announced on Monday.

The government agency said it was yet to appoint a panel and had not yet decided whether to conduct a review.

The Panel declared unacceptable circumstances in the proposed delisting of Flinders Mines on Monday but is yet to issue remedial orders or undertakings.



The declaration followed appeals against the delisting by the company’s second biggest shareholder OCJ Investment (Australia) and shareholder Brendan Dunstan.

More than 3000 minority shareholders of Flinders have mounted a nationwide campaign to fight against the proposed delisting of their company, which is supported by the company’s board and 55 per cent majority owner, New Zealand’s Todd Corporation.

Flinders announced plans to delist in December, citing low levels of liquidity in its trading, difficulty in accessing essential funding and the costs of remaining a listed entity.

The news of the proposed delisting prompted a 50 per cent fall in its share price.

In declaring unacceptable circumstances on Monday, the panel advised that the delisting process was likely to coerce shareholders to sell their shares into a market that was not sufficiently efficient, competitive and informed.

It said shareholders would not have reasonable time to consider the proposed on-market buy-back announced as part of the delisting, and enough information to assess its merits.

The panel also found shareholders who sold could be denied a reasonable and equal opportunity to take part in the benefits accruing to those who bought or retained Flinders shares.


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