Alliance Mineral founders see stake in company slashed after shares seized

Singapore-listed miner Alliance Mineral Assets' CEO, Tjandra Pramoko, at the Bald Hill mine in Western Australia.
Singapore-listed miner Alliance Mineral Assets' CEO, Tjandra Pramoko, at the Bald Hill mine in Western Australia.ALLIANCE MINERAL ASSETS

SINGAPORE - A settlement agreement and not a married deal was behind recent changes in interest for Alliance Mineral Assets' chief executive and executive director, the Singapore-listed mining company said on Monday (July 10).

Last Friday, 72.3 million shares were seized from Living Waters Mining Australia (LVMA), a private company wholly owned by Alliance Mineral chief executive Tjandra Adi Pramoko and his wife, executive director Simone Suen Sze Man. The couple founded the Australian mining firm in 2010.

The seizure goes towards a S$7 million judgment debt to creditor Grande Pacific. It follows a separate transfer of 46 million shares on June 16, under the same settlement agreement.

The seized shares - which make up 15 per cent of all voting shares - will be sold to satisfy the debt and interest, and any remaining unsold shares are expected to be transferred back to Alliance Mineral.

A writ of seizure and sale was filed and served by the Supreme Court on June 30, as the sum of S$7 million "was unavailable to be transferred to Grande Pacific Limited on the date as agreed in the settlement agreement", according to a notification submitted by Mr Pramoko to the Singapore Exchange.

Around 21.6 million shares will be sold or transferred to satisfy the judgment, said businessman Jonathan Lim Keng Hock's Singapore Exchange filing. Mr Lim's wife, Madam Marilyn Ting Hong Lean, is the sole owner of Grande Pacific.

The earlier transfer of 46 million shares - worth S$14.7 million - also went to Mr Lim. It slashed LVMA's stake in Alliance Mineral from 34.2 per cent to 24.6 per cent.

In a note on Monday, Maybank Kim Eng said the sale of the latest seized shares could further cut LVMA's stake in Alliance Mineral to just under 20 per cent, and likely to lead to an overhang on the company's share price in the near term.

Shares of Alliance Mineral were down 7.7 per cent to S$0.30 as at 2pm.