PERTH (miningweekly.com) – The Federal Court of Australia has dismissed ASX-listed Kasbah Resources’ application to merge with TSX-V-listed Asian Mineral Resources (AMR).
The court also ordered Kasbah to pay the “reasonable costs” of the shareholders who had objected to the AMR merger, including up to 50% of reserved costs from a previous interlocutory hearing brought by the objecting shareholders.
Kasbah earlier this week revealed that the third-party expert’s analysis of the offer, prepared by BDO Corporate Finance, had contained a “fundamental error” which affected the valuation methodology and changed the company’s opinion of the scheme to “not fair, but reasonable”.
Kasbah had hoped to have the second Federal Court hearing postponed, but instead the hearing went ahead.
Kasbah said it was considering its options and that its share trading would remain suspended until it was able to provide shareholders with a further update.
The board of Kasbah Resources, in August, unanimously recommended that all shareholders vote in favour of AMR’s intention to acquire the Australian miner. The companies entered into a scheme implementation agreement stipulating that AMR would acquire all of Kasbah’s ordinary outstanding shares. However, a small number of Kasbah shareholders raised objections to the proposed acquisition.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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