The Australian Securities Exchange has taken the extraordinary step of banning controversial entrepreneur Frank Timis from taking major shareholdings and directorships in two listed companies.
The ASX’s blocking powers, which have not been used in recent memory, could scuttle deals that would have seen Timis emerge with substantial holdings in two companies, Global Iron and International Petroleum.
Global Iron chairman Tony Sage, who is also a friend and associate of Timis, announced yesterday that the company would appeal the ASX’s decision to block Global Iron’s acquisition of Timis’ company African Petroleum. This deal would have given Timis a large stake in Global Iron.
Global Iron and International Petroleum may also consider legal action if their deals with Timis have to be unwound.
Romanian-born Timis is a prominent mining entrepreneur, but has attracted controversy throughout his career.
He was convicted of heroin possession in his 20s and was formerly the chief of Regal Petroleum, which is listed on London’s AIM market and was fined £600,000 after an investigation into a sharp fall in its share price in 2005. Regal’s share price fell after its oilfields were found to be unviable. Timis is no longer on the company’s board.
According to Global Iron, the “ASX’s decision, as advised to the Company, stems from its concerns over the influence of that Timis, as a substantial shareholder and non-executive director, will have on the Company’s ability to comply with its continuous disclosure obligations”.
Tony Sage has retained high-profiled Perth lawyer Martin Bennett to fight its case.
“The company is of the view that the ASX does not have the discretion or the authority to make this decision and has appealed ASX’s decision on that basis. The Company has also reserved all rights that it may have against ASX and has retained Martin Bennett to act on its behalf.”
Shares in Global Iron and International Petroleum remain suspended from trade.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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