Cobra Rescources Limited – Application in Relation to Cobra Resources [16/05/2003] The Takeovers Panel

Friday, 16 May 2003

APPLICATION IN RELATION TO COBRA RESOURCES LIMITED

The Panel advises that today it has received an application for a declaration of unacceptable circumstances in relation to the affairs of Cobra Resources Limited.

The application from the Australian Securities and Investments Commission is in connection with various statements made by Mr Terry Norman Stephens, which announce his intention to make a takeover bid for all the share capital of Cobra, and other circumstances surrounding the offer.

ASIC submits, amongst other things, that there are material deficiencies with the disclosure in the Bidder's Statement and the proposed takeover, and that the Bidder's Statement is misleading and confusing.

ASIC has also sought Mr Stephens to clarify how he plans to operate Cobra if his takeover is successful.

ASIC states that it has tried unsuccessfully to resolve these issues directly with Mr Stephens.

ASIC seeks interim orders preventing Mr Stephens from dispatching the Bidder's Statement to Cobra shareholders and acquiring shares in Cobra exceeding 20%, until the Panel has determined the proceedings.

ASIC seeks final orders, amongst other things, permanently restraining Mr Stephens proceeding with this bid.

The Panel notes that it has not yet considered the issues raised and makes no comment on the merits of the application. It also notes that it has not received submissions from the other parties to the application and it is, therefore, unaware of their views.

The President of the Panel has appointed Kevin McCann, John King and Teresa Handicott to be the Sitting Panel to consider the application.

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