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Taseko Mines: Dissidents' Financial Interests Now Severely at Odds with Shareholders
Taseko Mines: Dissidents' Financial Interests Now Severely at Odds with Shareholders ...
About this update from Taseko Mines Limited
[{"type":"text","content":"\n\n\n\nTaseko Mines: Dissidents' Financial Interests Now Severely at Odds with Shareholders\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nTaseko Mines: Dissidents' Financial Interests Now Severely at Odds with Shareholders\nCanada NewsWire\nVANCOUVER, Feb. 18, 2016\n\n\n\nVANCOUVER, Feb. 18, 2016 /CNW/ - Taseko Mines Limited (TSX: TKO; NYSE MKT: TGB) (\"Taseko\" or the \"Company\") today reports that dissident shareholder Raging River Capital LP (\"RRC\") and an as-yet undisclosed partnership at the same address, Raging River Capital 2 LLC (\"RRC2\") have together accumulated a large position in Taseko bonds, thereby putting the dissidents' financial interest at odds with Taseko shareholders. RRC and RRC2 have not publicly disclosed these purchases. \n\n\"We are very concerned both by the dissident group's large accumulation of bonds and by their failure to disclose it,\" said Linda Thorstad, Chair of Taseko's independent Special Committee of directors. \"This matter raises serious questions about whether RRC hopes to profit from its bond ownership at the expense of Taseko shareholders in the event that RRC's nominees are elected to the Board.\"\n\nNegative Implications For Shareholders\n\nRRC's alignment with bondholders has negative implications for common shareholders in the event that RRC's nominees are elected to the Board. Taseko's bonds, which have a total par value of US$200 million, would rank in priority ahead of shareholders for repayment and cash distributions if RRC's nominees can cause the Company to undertake certain kinds of transactions.\n\nMoreover, if RRC's nominees were successful in their publicly stated strategy of asset divestitures, the cash proceeds would have to be used to repay other debt holders ranking ahead of the bonds, and therefore would enhance the value of the bonds at the expense of growth initiatives that might benefit shareholders. Indeed, if Taseko's senior debt holder were to be fully repaid, further proceeds from asset divestitures not timely redeployed might have to be used to retire bonds at f...