Shares in local gold stocks Tribune Resources and Rand Mining have soared today, after each announced special dividends worth a combined $250 million, following an adverse ruling by the Takeovers Panel on Monday.
Shares in local gold stocks Tribune Resources and Rand Mining have soared today, after each announced special dividends worth a combined $250 million, following an adverse ruling by the Takeovers Panel on Monday.
The largest beneficiary will be Anthony Billis, who is managing director of both companies; his interlinked direct and indirect holdings were central to this week's Takeovers Panel ruling that the market was not properly informed about who controls Tribune.
The panel made interim orders last month prohibiting Mr Billis, his wife Phanatchakorn Wichaikul, along with several other entities from selling or transferring their shares in Tribune.
Tribune shares were up 44.86 per cent at $10.14 each at 2.30pm AEDT, while shares in Rand were trading 44.17 per cent higher at $3.46 per share.
In a statement to the ASX, Tribune said it had resolved to pay a $3.50 per share fully franked dividend, equating to $175 million, after organising for the sale of about $250 million worth of gold.
“The board’s decision to declare this special dividend comes after more than six months of discussion and deliberations and has factored in feedback from Tribune shareholders following our payment of a maiden dividend in July 2017 and another dividend in August 2018,” Tribune non-executive director Gordon Sklenka said.
“We believe the time is right to share with all shareholders the tremendous value of gold bullion built up by the company through its participation in the East Kundana joint venture (EKJV).
“To that end, we have organised for the company to sell the gold that it has stored at The Perth Mint at prevailing market prices and pre‐pay the due tax to make available a fully franked distribution to all shareholders.”
Mr Sklenka said the gold miner remained well-funded to pursue mining and exploration activities.
Rand announced today it will pay a $1.25 per share dividend, fully franked - it has about 60 million shares on issue, representing a total payout of about $75 million.
Tribune and Rand are closely linked to one another, sharing the same board of directors, the same major shareholders and even their South Perth headquarters.
They are also the largest substantial shareholders in each other, with Rand owning 26.3 per cent of Tribune and Tribune owning 44.1 per cent in Rand.
The two companies own a combined 49 per cent stake in the EKJV (with Northern Star Resources owning 51 per cent), which owns the Kundana gold operation north-east of Coolgardie.
On Monday, the Takeovers Panel made a finding of unacceptable circumstances against Tribune.
The ruling follows long-running speculation about Tribune, which has three major shareholders - Sierra Gold, Trans Global Capital and ASX-listed Rand.
The Takeovers Panel considered that the market has not been informed, and continues not to be informed, of persons who have a relevant interest in Tribune shares held by Sierra, Trans Global and Rand.
Tribune said it would work with the panel in regards to the issues it has identified.
“We are not completely surprised by the Panel’s findings, with some of the substantial holder notices by various shareholders identified as deficient during the process,” Mr Sklenka said.
“Management continues to focus on delivering shareholder value, as evidenced by the 66 per cent share price gain over the past three years and the continuing dividend payments to shareholders.”
