Decision in Relation to Pinnacle VRB Ltd (No 2) [06/11/2000] The Takeovers Panel

Monday, 06 November 2000

Decision in Relation to Pinnacle VRB Ltd (No 2)

The Panel announced that it has declined to make a declaration of unacceptable circumstances in relation to the affairs of Pinnacle VRB Ltd. The application was made by Federation Group Ltd which is currently bidding for all the issued shares, and two classes of option, of Pinnacle.

Federation was concerned that various statements made by Pinnacle to its shareholders and optionholders in a letter that it released to Australian Stock Exchange on 9 October, 2000, were misleading. Federation was also concerned about various statements in, or omissions, from Pinnacle's target's statement. The statements were generally in relation to the stage of development and deployment of Vanadium battery technology.

Pinnacle has undertaken to send a supplementary statement to its option and shareholders and give a copy to the stock exchange.

The supplementary statement corrects statements made by Pinnacle concerning the numbers and capacities of VRB installations, and Pinnacle's role in a demonstration VRB unit installed in South Africa by Federation for South Africa's major electricity supplier ESKOM.

The supplementary statement also alerts shareholders to a dispute which Pinnacle is currently seeking to resolve with Expectation Pty Ltd concerning a potentially very significant license agreement over Pinnacle's VRB technology.

Federation has extended its bid so that Pinnacle option and shareholders will have sufficient time to consider the offer after receiving the supplementary information.

The Panel noted its disappointment in the repeated defects in Pinnacle's releases.

The sitting Panel for this application was constituted by Simon McKeon (President), Professor Ian Ramsay and Ms Robyn Ahern.

Nigel Morris
Director
Corporations and Securities Panel
Level 47 Nauru House, 80 Collins Street
Melbourne VIC 3000
Ph: +61 3 9655 3501
nigel.morris@takeovers.gov.au