The board Chaarat Gold Holdings Ltd (LON:CGH) has exercised its right of waiver in regard to a potential mandatory offer for the company under its own articles of associations.
The articles say that any shareholder with a more than 20% holding who then increases his or her stake must make a mandatory offer for the company, but that directors also have a right to waive this requirement.
Chaarat chairman Martin Andersson has an indirect interest in more than 32% of Chaarat’s shares via his majority ownership of investment vehicle Labro.
Labro also controls a significant chunk of the company’s debt.
Under the terms of the latest waiver Labro can acquire an additional four million shares, provided it does so by 6 January 2020.
Chaarat owns extensive gold operations in Central Asia and has made no secret of its aggressive plans for expansion.