By NZPA
|
Thursday 28th November 2002 |
Text too small? |
Shareholders will vote on Friday on an offer by International Marine Services Ltd (IMSL) to take a 49 percent stake in the troubled deep sea tourism operator.
But the deal, in which IMSL will receive 10 million shares at 5c each, valuing the stake at $500,000, hit a snag earlier this week.
It caught the eye of the takeovers watchdog because Submarines' notice of meeting didn't include a statement as to whether there was any agreement between IMSL and any other person about the allotment, or about the exercise of voting rights.
"The panel determined that the notice of meeting sent by Submarines to shareholders on or about November 14 did not comply with rule 16 of the code and that any allotment of securities to IMSL made on the basis of the resolution proposed in that notice of meeting would be in breach of the code," the Takeovers Panel said.
The panel said it has since determined that Submarines intends to comply with the code and won't take any further action against the company.
IMSL's offer has the backing of Submarines' board and is now in the hands of the company's 420 shareholders. It is seen as crucial to keeping the troubled venture afloat.
Submarines' has clocked up $4.3 million worth of losses in the past two years. The plug was pulled on its submarine venture, taking tourists into the Milford Sound, in April.
The company looked at opening a similar operation on Lake Wakatipu in Queenstown, but failed to find a backer.
The submarine has not worked since, and both it and a purpose built barge have been for sale for $2.8 million.
At least $4.5 million has been raised in venture capital for the project in the past two years, including a share float and underwriter's contribution.
No comments yet
