BDL 0.00% 13.5¢ brandrill limited

Brandrill shareholder action

  1. 235 Posts.
    An article in today's "Age" says that some shareholders are not too happy with Brandrill's proposed capital raising.
    It can be found about half way through this link:
    http://theage.com.au/articles/2002/08/09/1028157995306.html

    but here it is anyway:

    "Brandrill notes issues face shareholder resistance front

    The board of rock-breaking group Brandrill is copping opposition from some dissident shareholders.

    The two shareholders are Gordon Bradley Elkington and Gerry Pauley.

    Elkington, it might be recalled, has been active on what could be called the preference shareholder resistance front, while Pauley is also an investor in obscure securities.

    The pair teamed up last year with an assault on the listed Stokes group.

    This time they are taking on Brandrill and opposing a placement and debt conversion issue.

    The company is making a $7.8million rights issue to shareholders, a placement to raise up to $5.1 million, and a debt conversion issue.

    All involve the issue of mandatory converting notes.

    Pauley and Elkington have written to Brandrill's top 150 shareholders hoping to stop the placement and the debt conversion issue.

    The pair reckon that "the fairest way to proceed is clearly to invite existing shareholders to subscribe additional capital to the company in proportion to their existing shareholdings. In this way nobody who wishes to support the company need be diluted and, in this respect, the terms of additional securities do not greatly matter ..."

    They urged shareholders to vote against the placement and debt conversion resolutions.

    "Non pro-rata issues are just not on," thundered Elkington yesterday.

    "They need to be very strongly discouraged, they are very undesirable."

    Get the picture?"



 
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