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Katanga Mining Ltd, through its subsidiaries, is engaged in copper and cobalt production activities in the Democratic Republic of Congo (DRC). Specifically, the company explores and develops properties with potential copper and cobalt yields operate mining and processing facilities that produce copper and cobalt and holds a portfolio of other mines that may be developed in the future.

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Katanga Mining Ltd Ord > Deep dive two of three: Minority Rights just went out the wi

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Post by topdop on Nov 07, 2019 9:24pm

Deep dive two of three: Minority Rights just went out the wi

On my Seeking Alpha KvN KAT Blog on 1st Nov I posted reference the Hudson Bay proposed "taking private" Takeover remaining confident that KAT Minority Shareholders still retained "a majority of the minority" voting right status that could be used to block GLEN in any proposed takeover.

I was wrong. And of course that post was made in advance of today's Rights Issue bombshell.

So read the fineprint. Right there on page - iii - of the Preliminary Offering document released today is this small phrase stating how our powers can (and will) be usurped by a "rule exemption" as described by the following:

"In the event that Glencore becomes the beneficial owner of 90% or more of the Common Shares of the Company, Glencore will be able to take the Company private without obtaining minority shareholder approval pursuant to the exemption in section 4.6(1)(a) of MI 61-101. See "Risk Factors". See "Standby Commitment".

The Glencore takeover I and many have long discussed is now clearly a certainty and looms as a very large negative dark cloud above in my quandary as to taking up my allocation Rights. I will follow with further posts in due course.

These are my views only. Thanks for reading.

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