Takeovers Panel Faces Challenge Over Maronan Metals’ $16M Placement
An application to the Takeovers Panel questions the integrity of Maronan Metals’ recent $16 million placement and its share purchase plan, raising concerns about undisclosed relationships and share price manipulation.
- Application lodged by Ben Pauley with the Takeovers Panel
- Allegations of undisclosed links between placement recipients and joint lead manager
- Concerns that placees may be suppressing share price to enable takeover
- Request to defer share purchase plan and amend or cancel placement
- Share price has fallen below the share purchase plan price amid controversy
Background to the Dispute
Maronan Metals Limited, an ASX-listed miner with interests in silver, lead, copper, and gold, recently announced a $16 million institutional placement priced at 35 cents per share. Alongside this, the company launched a share purchase plan (SPP) aimed at raising an additional $3 million from retail shareholders at the same price, with the SPP scheduled to close on 30 October 2025.
The Takeovers Panel Application
On 28 October, the Takeovers Panel revealed it had received an application from investor Ben Pauley challenging aspects of the placement and the SPP. The application alleges that some recipients of the placement shares are connected to Veritas Securities Limited, one of the joint lead managers, a relationship that was not disclosed to the market. This raises questions about the transparency and fairness of the capital raising process.
Concerns Over Share Price Manipulation
Further, the applicant contends that certain placees have a history of selling shares post-placement to deliberately depress Maronan’s share price. The alleged strategy, according to the application, is to keep the share price low enough to facilitate a takeover bid. This purported conduct has reportedly eroded retail shareholders’ confidence, as evidenced by the share price trading 6.5 cents below the SPP price, reducing incentives for retail participation.
Requested Remedies and Potential Impact
Mr. Pauley seeks an interim order to defer the SPP and a final order to cancel or amend the placement. The Takeovers Panel has yet to appoint a sitting panel or decide whether to proceed with formal proceedings. The outcome could have significant implications for Maronan’s capital raising strategy and investor trust, particularly if the allegations of undisclosed associations and market manipulation are substantiated.
What Lies Ahead
As the SPP closing date approaches, market participants will be watching closely for any developments from the Takeovers Panel or Maronan Metals. The company’s ability to secure retail investment and maintain a stable share price could hinge on the resolution of these allegations. Meanwhile, the broader mining sector will be attentive to how regulatory bodies handle such disputes, given their potential to influence capital raising norms.
Bottom Line?
The unfolding challenge to Maronan’s placement could redefine investor confidence and capital raising practices in the mining sector.
Questions in the middle?
- Will the Takeovers Panel grant the interim order to defer the share purchase plan?
- What evidence exists regarding the alleged undisclosed association between placees and Veritas Securities?
- How might this dispute affect Maronan Metals’ share price and future fundraising efforts?
