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Alliance's institutional shareholder will vote for proposed merger
AN institutional shareholder of Catalist-listed Alliance Mineral Assets has indicated its intent to vote for the proposed merger with Australia-listed Tawana Resources, in absence of a superior proposal.
Regal Funds Management intends to vote all of its shares in favour of the resolutions of the scheme tabled for the merger, Alliance Minerals said after Thursday’s trading close.
This is conditional on no superior proposal being publicly announced for Alliance Minerals before the extraordinary general meeting scheduled to seek shareholders’ approval for the merger.
The fund, which holds over 65.6 million shares representing 10.12 per cent of Alliance Mineral’s issued share capital as at Thursday, indicated however, that it reserves the right to sell all or part of its shares at any time.
The merger called for Tawana shareholders to receive 1.1 new Alliance shares for every one Tawana share. Once the transaction is completed,Tawana and Alliance shareholders will collectively hold around 50 per cent interest in the new merged group.
Both companies had in April agreed to “a merger of equals” to create a mid-tier lithium producer. The merger is expected to be completed by the fourth quarter of 2018.
Alliance shares closed at 35 Singapore cents on Thursday, up one Singapore cent.