[miningmx.com] – RESOURCE Generation (Resgen) has sought permission from the Takeovers Panel to have the votes of certain shareholders it claims are acting in concert discounted from an upcoming general meeting.
Resgen said its application to the panel was to seek “a declaration of unacceptable circumstances” related to the association between its three largest shareholders: Altius Investments, Noble Group and the Public Investment Corporation (PIC).
The coal development firm, which is listed in Sydney and Johannesburg, believed that the three companies, which hold a combined 37% of Resgen’s shares, have been working together to call a general meeting the purpose of which is to replace the firm’s current set of directors, executive and non-executive.
The general meeting requires a 50% plus one share majority in order for its recommendations to succeed. Altius told Miningmx earlier this month that it was concerned Resgen’s board did not have enough local flavour.
“The company is seeking orders from the Takeovers Panel that none of Altius, Noble or PIC be able to vote at the requisitioned general meeting or any adjournment thereof,” it said in its statement.
Resgen announced on October 1 that the shareholders had used certain proprietary information from their participation in talks aimed at raising $400m for the firm in order to requisition the general meeting.
Resgen was hoping to raise $400m to complete the building of the proposed six million tonne/year Boikarabelo coal project in South Africa’s Limpopo province. It claims that the PIC, which is owned by the South African government, Noble and Altius were part of a club of bankers with which it had been negotiating since last year.
In an announcement on September 30, Resgen said it had signed a memorandum of understanding with a Swiss private equity group, HAB & JPR Privee, that could secure $539m in funding for Bokarabelo.
However, the Swiss have reserved the right to pull the funds in the event of Resgen’s board being changed.
“Accordingly, Resource Generation has written to Altius asking it to withdraw its requisition for the general meeting so the mine’s funding is not jeopardised,” the company said – a request that was rejected by the shareholders.
