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Alliance Mineral's substantial shareholder's shares seized
AUSTRALIAN miner Alliance Mineral Assets on Tuesday night said the company was made aware that a writ of seizure and sale dated Nov 23, 2017 has been issued by Singapore's High Court.
Some 40,029,786 Alliance Mineral shares belonging to substantial shareholder Living Waters Mining Australia (LWMA) were seized. LWMA is a private company wholly owned by Alliance Mineral's chief executive Tjandra Adi Pramoko and his wife, executive director Simone Suen Sze Man.
The seizure is, however, limited to LWMA or Mr Tjandra satisfying payment of about S$5.48 million to Grande Pacific. This amount includes S$5.46 million pursuant to the settlement agreement between the parties, being the difference between the strike price of S$0.50 per share and the volume weighted average price of S$0.3815 per share.
Alliance said that it understands from LWMA's legal counsel that only the number of seized shares required to satisfy the debt will be sold. The actual number of seized shares sold will be determined based on the prevailing market price of the firm's shares at the time of the sale. Any remaining unsold seized shares will be transferred back to LWMA.
Additionally, a further 46,074,788 shares in Alliance Mineral held by LWMA continue to be frozen as security for the sum payable.
"The payment of the debt through the sale of the seized shares is expected to satisfy the sum payable," Alliance Mineral said.
It added that once this has been fully paid, the injunction over the frozen shares is expected to be discharged.
Alliance further said on Wednesday that LWMA has been advised that under Singapore law, seizure by a Sheriff does not change ownership of shares. As such, all voting rights are not affected until and unless the shares are sold and transferred to a buyer.
As a result of the seizure of the shares, both Mr Tjandra and Ms Suen's control and authority to sell the seized shares are now subject to a restriction because of the seizure by Sheriff's Office. But the number of shares that Mr Tjandra and Ms Suen are interested in remains the same.