Alliance Mineral Assets CEO’s shares seized on court order as part of claim by Jonathan Lim Keng Hock

Alliance Mineral Assets CEO’s shares seized on court order as part of claim by Jonathan Lim Keng Hock

Chan Chao Peh
10/07/17, 12:20 pm

SINGAPORE (July 10): Shares amounting to a 15% stake in Alliance Mineral Assets (AMA), whose deemed owners are CEO Tjandra Pramoko and his wife Suen Sze Man, had been seized on June 30 on a Singapore court order, said the company on Monday before the market opening.

According to court documents, these 72.3 million shares were seized as part of a claim made by Singapore businessman Jonathan Lim Keng Hock (photo).

See: REO Magnetic’s Jonathan Lim is new substantial shareholder of Alliance Mineral Assets

In an exclusive interview with The Edge Singapore on Sunday, Lim said he gave A$7 million ($7.4 million) to Pramoko and Suen back in 2009 in exchange for a 50% stake in Living Waters Mining (Australia) (LWMA), an entity the couple created to own the mining assets that are now in AMA.

However, Lim claimed he found out a week before AMA’s IPO back in July 2014 that he wasn’t even listed as a shareholder in the prospectus. PrimePartners Corporate Finance was the issue manager, sponsor and placement agent for AMA’s listing.

Since then, Lim said he has been trying to claim his rightful share back from Pramoko and Suen, who is also an executive director of AMA. At the time of listing, LWMA held around 40% of AMA, which was offered to the public at 23 cents per share.

On April 25, both parties, in the presence of retired judge Kan Ting Chiu, reached an agreement following a mediation process. Under terms of the settlement, LWMA was to transfer nearly 46.1 million shares to Lim. LWMA also had to pay Lim $7 million by May 31, 2017.

The April 25 agreement also had a put and strike option. If AMA shares did not hit 50 cents six months after the agreement date, which is Oct 24 2017, Pramoko and LWMA would have to pay Lim the sum equivalent to the difference between the volume weighted average price of the seven days prior the date, and 50 cents.

But if shares of AMA rose above 50 cents by Oct 24 2017, Pramoko would not have to make further payment. As security for Lim, the court ordered the injunction of another 46.1 million shares.

On June 15, the 46.1 million shares, or 9.6% of the company, were transferred from LWMA to Lim in an off-market transaction worth $14.7 million, or 32 cents per share.

This was subsequently disclosed by AMA in a Singapore Exchange filing on June 21.

But the filing again made no mention that the off-market transaction was part of the April 25 court settlement.

Finally, when Lim did not receive the $7 million cash portion of the settlement by the May 31 deadline, a writ of seizure was made on June 21 to seize AMA shares under LWMA. The shares were held under a nominee shareholder entity called Raffles Nominee. The seizure was completed on June 30.

Lim told The Edge Singapore he launched the suit because he was unhappy Pramoko had delayed the repayment and also changed its terms unilaterally along the way. He claimed he wasn’t after control of AMA and dismissed suggestions he made his move only after AMA shares rose.

With 46.1 million AMA shares under LWMA already transferred to Lim, and another 46.1 million frozen, LWMA is left with only 72.3 million shares – which was seized by the court on June 30 when the $7 million payment was not made.

As at 12 noon, shares of AMA are trading 3 cents lower at 30 cents.

Based on this price, the 72.3 million shares are easily worth more than $20 million.

Year to date, shares of AMA have gained more than 200%.

See also: Alliance Mineral’s CEO Tjandra says will pay Lim in two weeks to free up seized shares

Right timing: STI challenges resistance

SINGAPORE (Apr 20): Straits Times Index (Daily, 3,573) The Straits Times Index experienced an almost non-stop advance of 234 points from 3,339 a fortnight ago, when it was testing its 200-day moving average at 3,375, to 3,539. On Apr 19, the STI tested 3,604, just shy of the year’s high of 3,609 attained on Jan 24. The STI undoubtedly strengthened against the Hang Seng Index, which is still significantly below its Jan high. The rally enabled the STI to regain the confluence of its 50- and 100-day moving averages, currently at 3,475, the new support level. A break above 3,609....
Caption: Minority shareholder Chew Ah Kong urges shareholders to vote against the proposed 1-cent per share dividend.

Datapulse shareholders vote in favour of current board

Sharanya Pillai (Apr 20): The current board of Datapulse Technology successfully dodged an attempt to be ousted on Friday, clearing the way for the company’s controversial diversification plans into the haircare business. At a raucous extraordinary general meeting of nearly 200 shareholders, shareholders voted against resolutions to oust CEO and executive director Wilson Teng, chairman Low Beng Tin, and independent directors Rainer Teo and Thomas Ng. They also voted against resolutions to appoint the slate of directors proposed by the dissenting faction, namely Ng Bie Tjin @ Djuniarti ....

AusGroup bags $27 mil contract for structural, mechanical and piping installation in Western Australia

SINGAPORE (Apr 20): AusGroup’s subsidiary, AGC Industries, has been awarded a contract worth A$27 million ($27.4 million) for a structural, mechanical and piping installation package in Western Australia. The contract includes the installation of approximately 2,000 tonnes of structural steel and associated flooring and cladding; 70 tonnes of plate work; and 450 pieces of mechanical equipment for the Talison Lithium Chemical Grade Plant 2 (CGP2) expansion project at Greenbushes. The CGP2 project will significantly expand production of lithium oxide concentrates from Greenbushes. The....