The Australian Securities and Investments Commission (ASIC) has appointed Morgan Stanley Wealth Management Australia (Morgan Stanley) to sell 3,112,422 ordinary shares in CMI Limited (CMI).
The takeovers panel decided to vest the shares, which represent approximately 9.2 per cent of CMI's issued capital, in the Commonwealth for sale by ASIC.
The sale process will follow the requirements laid out in the panel's orders provided to the Australian Securities Exchange (ASX) on 5 December 2012.
The move will see Morgan Stanley determine the most appropriate sale method and dispose of the shares within three months.
Also as part of the orders, neither Tinkerbell Enterprises trustee Leanne Catelan nor her associates are permitted to directly or indirectly purchase any shares, unless the shares are sold on market and the acquisition is permitted under the Corporations Act 2001.
Prospective purchasers must provide a statutory declaration that they are not associated with Ms Leanne Catelan or any of her associates, unless the shares are sold on market.
On 25 February 2011 the takeovers panel declared the purchase of 9.22 per cent of CMI's ordinary shares by Tinkerbell Enterprises as 'unacceptable circumstances'.
Mr Raymond Catelan and Ms Leanne Catelan were found to be associates in relation to the affairs of CMI. The association was left undisclosed and the acquisition did not take place in accordance with the exceptions to the takeovers prohibition in s611.
Whilst Tinkerbell applied for judicial review of the panel's decision, the sale stayed pending. ASIC appeared and made submissions in defence of the panel's decision and on 16 November 2012, Collier J dismissed the judicial review application with costs.
In April 2012, following a public tender process, ASIC entered into a standing arrangement with Morgan Stanley for the provision of stockbroking services.
