Golden Energy’s plans to delist and exit thermal coal business win majority votes at EGM

COAL miner Golden Energy and Resources (Gear) has received the green light to go ahead with its delisting plans and to undertake a distribution in-specie of its 62.5 per cent stake in Indonesia-listed thermal coal subsidiary Golden Energy Mines (Gems).

At the extraordinary general meeting (EGM) on Friday (Jun 9), shareholders with 508,463,022 shares voted on the two resolutions: one to delist, and the other, a proposed distribution in which they would receive 1.3936 shares of Gems for every Gear share they owned.

The resolution to delist received a 99.89 per cent approval; the distribution resolution passed with 99.91 per cent approval. (*see amendment note)

The offerer and its concert parties, including Dian Swastatika Sentosa, abstained from the voting process. They represented a total of 2,044,145,469 shares, or 77.49 per cent interest in the company, based on 2,638,100,380 total issued shares in the company as at the EGM.

This means that 85,491,889 shares, or those holding 3.2 per cent of the company, chose to abstain from the EGM.

The company said in a bourse filing: “Shareholders should note that approving the delisting resolution at the EGM does not automatically mean that the exit offer has been accepted by them.”

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Further, the distribution will take place only when certain conditions are met, such as obtaining court approval for capital reduction, as well as regulatory approval for the distribution.

If these conditions are not satisfied, the proposed distribution will not go through, Gear said.

It added that further updates will be put up on the Singapore bourse if and when all other distribution conditions or exit offer conditions have been satisfied.

The court hearing date for the exit and distribution offer has been set for Jun 13 at 10 am.

*Amendment note: The percentages of approval for the resolution to delist as well as proposed distribution was earlier switched. The article has been amended to reflect this.