Pan Asia cap raise ignored by shareholders, gives chairman 52pc control

Mining Rachel Williamson
This much ... Only 4.5 per cent of shareholders took up Pan Asia's $1.2m rights issue. Picture: Getty

This much ... Only 4.5 per cent of shareholders took up Pan Asia's $1.2m rights issue. Picture: Getty

The new chairman of coal explorer Pan Asia Peter Chai has won control of the company after only 4.5 per cent of shareholders took up a $1.2 million rights issue.

Pan Asia (ASX:PZC) raised $55,442 at 0.2c a share.

Mr Chai will effectively take up 95.5 per cent of the issue because he controls the underwriter, Advisors Alliance.

He will now have control of the company with a 55.11 per cent stake.

Pan Asia is proposing to sell its Indonesian coal asset, the TCM project.

That deal is worth about $7.5 million to Pan Asia.

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