Coppermoly Ltd: intentions of an underwriter
By Bryn Davis
The recent decision of the Takeovers Panel in Coppermoly Ltd  ATP 8 highlights that underwriters and their associates should be extremely careful about making any acquisitions of target shares after having entered into an underwriting agreement, no matter how small.
On 26 June 2013, Coppermoly announced a non-renounceable one-for-four entitlement offer to be fully underwritten by Jelsh Holdings, together with a placement to Jelsh of approximately 3.7 million shares.
When the offer opened, Jelsh had voting power of 0.53 per cent. During the offer period, a related party of Jelsh acquired both on and off market a further 16,290,333 Coppermoly shares, which increased Jelsh’s voting power to 12.06 per cent (pre-underwriting acquisitions). The rights offer closed with only 1.75 per cent of shares being taken up by Coppermoly shareholders under the offer and the shortfall facility. Pursuant to its underwriting arrangement, Jelsh was to take up additional shares in Coppermoly to increase its voting power to 26.76 per cent…
If you are registered and logged in to the site, click on the link below to read the rest of the Minter Ellison briefing. If not, please register or sign in with your details below.
News from Minter Ellison
News from The Lawyer
Briefings from Minter Ellison
How would an organisation handle the reinstatement of a dismissed employee while the matter is being heard?
Conflicts of interest can be an inevitable part of employment for university academics, especially when performing different roles.