Australian regulator bows out of Strategic Energy and Quantum Graphite dispute
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An Australian government regulator has refused to intervene in a dispute between Strategic Energy Resources and Quantum Graphite.
The Takeovers Panel told Strategic Energy (ASX:SER) on Friday that it would not make a declaration of unacceptable circumstances in relation to Quantum Graphite (ASX:QGL), formerly Valance Industries.
Strategic Energy raised concerns with the panel over Quantum’s adequacy of disclosure in the notice of annual general meeting and its alleged failure to lodge a substantial shareholder notice following a share issue in September.
However, the panel said that it did not think it was in the public interest to make a declaration of unacceptable circumstances because of the potential impact it could have on the recent recapitalisation deal Quantum had struck with its creditors.
Strategic Energy has been trying to have Quantum stripped of its Uley graphite mine leases so it can take control of the project, and has also called for the removal of two directors.
The company previously expressed concerns over Quantum’s issue of shares to unsecured creditors and secured creditor beneficiaries. But shareholders approved the issue of shares at the December annual general meeting.
Strategic Energy alleged the share issue could result in Australasian firm Chimaera Capital obtaining a relevant interest in more than 20 per cent of Quantum and give rise to an “unacceptable control transaction”.
Stockhead is seeking comment from Quantum.