Alliance Mineral Assets' bosses are no longer the mining company's largest shareholder after their stake was seized as part of a settlement agreement.
Alliance chief executive Tjandra Adi Pramoko and his wife, executive director Simone Suen Sze Man, had held about 24.6 per cent of the Singapore-listed firm through their investment vehicle, Living Waters Mining Australia.
But yesterday, Alliance said that a 15 per cent stake, or 72.3 million shares, in the mining firm had been seized. The move appears to be part of a settlement deal with businessman Jonathan Lim Keng Hock.
Alliance said that under the terms of the agreement, Living Waters was to have paid $7 million to Grande Pacific, a firm controlled by Mr Lim's wife. But as that sum "was unavailable to be transferred to Grande Pacific Limited on the date as agreed", a writ of seizure and sale was filed. Alliance did not give details about the dispute and settlement.
At yesterday's closing price, the 15 per cent stake would be worth about $20.2 million. But only around 21.6 million shares will be sold or transferred to satisfy the judgment. The rest are expected to be transferred back to Alliance.
Mr Lim is director of mining company REO Magnetic, while his wife, Madam Marilyn Ting Hong Lean, is the sole owner of Grande Pacific.
The seizure comes after a separate transfer of 46 million shares, worth $14.7 million, on June 16.
That off-market transaction, which was part of the same settlement, turned Mr Lim into a substantial shareholder in Alliance and slashed Living Waters' stake from 34.2 per cent to 24.6 per cent. After yesterday's move, the stake is now 9.58 per cent.The shares closed 4.5 cents lower at 28 cents yesterday.