The Whitehaven Ltd (ASX: WHC) share price is lower amid the company being declined a formal request to block the voting rights of a hedge fund manager at the annual general meeting (AGM) today.
The ASX 200 coal stock is currently trading at $7.76 apiece, down 0.19%, while the S&P/ASX 200 Index (ASX: XJO) is also trading lower, down 0.67%.
Let's fill you in on the drama.
Whitehaven share price lower on Thursday
On Tuesday, Whitehaven submitted an application to the Takeovers Panel seeking to block the votes of United Kingdom investor group Bell Rock Capital Management LLP due to an alleged non-disclosure.
Whitehaven alleges that in communications with Bell Rock this year, the group told Whitehaven it held a combined physical and derivative interest in Whitehaven shares of approximately 11%.
Whitehaven claims Bell Rock has not disclosed its interest in accordance with the panel's guidance.
The company also alleged Bell Rock had "misled shareholders" in a letter to them stating it manages just under 5% of the stock.
Bell Rock recently wrote to shareholders urging them to vote against incentive plan awards for the managing director. It also urged votes against certain director nominations at the AGM today.
Whitehaven told the Takeovers Board that it wanted Bell Rock's vote at the AGM to be disregarded unless its derivative interest was declared.
Late last night, the panel responded in a statement saying:
The Acting President of the Panel has declined to make the interim orders sought by Whitehaven.
A sitting Panel has not been appointed at this stage and no decision has been made whether to conduct proceedings. The Panel makes no comment on the merits of the application.
Fundie doesn't like mines deal, either
Bell Rock is also opposed to Whitehaven's proposed $5 billion acquisition of two Queensland coal mines.
As we reported last Wednesday, Whitehaven wants to buy the Daunia and Blackwater metallurgical coal mines owned by BHP Group Ltd (ASX: BHP) and Mitsubishi Alliance (BMA).
ASX investors responded positively to the news, with the Whitehaven share price soaring as high as 15% on the day of the announcement.
At the AGM this morning, Whitehaven chair Mark Vaile AO was spruiking the benefits of the deal.
He said it advanced Whitehaven's pre-existing strategy to grow its metallurgical coal business.
Vaile said:
Last week's announcement that we have entered into agreements with BHP and Mitsubishi to acquire the Daunia and Blackwater coal mines significantly accelerates our strategy in this regard and will give rise to a larger, more diverse business, with materially greater exposure to long-life, metallurgical coal assets with attractive cost profiles.
The increased scale delivered by the acquisition will consolidate Whitehaven's position as the leading Australian ASX-listed metallurgical coal producer. It is a highly earnings accretive acquisition from its first year, with considerable upside potential, which we expect will deliver meaningful returns to our shareholders from the outset.
A fourth director buys more shares
In other news, we reported yesterday that Vaile and two other directors had upped their personal holdings in Whitehaven shares last Thursday and Friday following news of the coal mines purchase.
Another disclosure lodged with the ASX yesterday shows a fourth director has also bought more shares.
Nicole Brook bought 10,000 Whitehaven shares on-market on Monday for $76,084.
This is Brook's first purchase since joining the board in November last year. She did not own shares at the time of joining the company.
