Indo Mines says goodbye to the ASX after major shareholder takes 76pc stake
Indo Mines is to be de-listed from the ASX after its biggest investor took a greater chunk of the iron sands explorer.
Leading Indonesian investor Rajawali Group has increased its ownership of Indo (ASX:IDO) to 76.49 per cent after launching a $4.6 million takeover offer in November.
Rajawali, which started out with a 57.12 per cent stake prior to its takeover play, believes Indo should be removed from the ASX because of the low level of liquidity and the fact a “large proportion” of shareholders have unmarketable parcels of shares.
An unmarketable parcel is a shareholding worth less than $500 which, for a holder, may be difficult or expensive to sell.
It can also be costly for a company to maintain these small holdings.
Rajawali told investors that given Indo’s size – it has an $8 million market cap – and low level of trading it could not justify the financial, administrative and compliance obligations of maintaining an ASX listing.
The only option shareholders have to dispose of their Indo shares is either via an on-market sale prior to the de-listing or sell them off-market after that.
Rajawali is not planning to implement a formal share buy-back, sale facility or any other arrangement for shareholders to dispose of their shares prior to de-listing.
Shareholders will have at least three months to sell their shares once they receive formal notification from Indo of the planned delisting.
Stockhead is seeking comment from Indo.