LONDON (Reuters) - Shareholders of miner Stratex International (STIL.L) have blocked a reverse takeover of Australian-listed Crusader Resources (CAS.AX) and voted chief executive Marcus Engelbrecht out of office.
Engelbrecht had said the acquisition of Crusader Resources and its gold projects in Brazil would be transformative, but he encountered opposition from shareholders who said it did not make sense for the largely Africa-focused company to diversify into Brazil, where Stratex does not have experience.
In a statement on Wednesday Stratex said Engelbrecht had left the company with immediate effect and the company would make further announcements in due course.
A group of rebel shareholders had led opposition to the board and have also put forward a development plan that would merge Thani Stratex Resources Limited (TSRL), in which Stratex holds a 30 percent stake, with Stratex.
David Hall, chief executive of TSRL and a Stratex shareholder with a more than 2 percent stake, was behind the development plan. He said he would be happy to step in as overall CEO if asked and that Wednesday’s vote was “a victory for shareholders”.
Until this week the biggest shareholder was South Africa’s AngloGold Ashanti (ANGJ.J) with 11.49 percent, but Reuters data shows it has sold its stake.
Analysts at SP Angel said the development plan appeared to be a better proposition for Stratex shareholders.
“It looks a whole lot better than paying a 63 percent premium on Crusader shares and suffering 81 percent dilution for a low-grade gold asset in Brazil and an unproven exploration project in a country where Stratex has had no previous infrastructure,” they said in a note.
Reporting by Barbara Lewis; Additional reporting by Simon Jessop in London and Tanisha Heiberg in Johannesburg; Editing by David Goodman