PERTH-BASED investment house Asset Backed Holdings has increased its holding in public unlisted company Phosphate Resources Limited by another 3 per cent taking its total holding to about 32.6 per cent of the company.
The company’s announcement to the Australian Stock Exchange says the increase in its holding in the Christmas Island-based phosphate miner is within the “3 per cent creep provisions” allowed under the Corporations Act.
It also announced that the loan facility it granted to PRL has been extended and is now due to be fully paid by December 20.
Asset Backed was the subject of a Takeovers Panel investigation over some unusual deals made by PRL’s board that, at the time, consisted of three ABH directors.
PRL held a $4.2 million share buy back that Asset Backed did not take part in. At the end of that period its stake rose to 26.7 per cent.
PRL then launched a $4.2 million rights issue. Asset Backed offered to underwrite $2.7 million.
If that rights issue had not been fully subscribed, Asset Backeds could have held nearly 40 per cent.