G-Resources Discussing Dividend With BlackRock After Mine Saleby
Some shareholders want to reinvest cash, G-Resources says
G-Resources says there is no time frame for possible payment
G-Resources Group Ltd., a mining company that’s now focusing on investing, said it has been in talks with BlackRock Inc. about paying a special dividend to shareholders after it sold its largest asset, a $775 million gold mine in Indonesia.
BlackRock in February urged G-Resources shareholders to vote against the mine sale. The world’s largest money manager, which holds about 9 percent of G-Resources, couldn’t gain enough support to stop the sale and the Hong Kong-based company proceeded with the Martabe mine disposal.
“Some shareholders want a special dividend, some want a better return by reinvesting cash,” Richard Hui, an executive director G-Resources Group, said in an interview on Wednesday. “Our business has always been investment and mining: two businesses, not just mining.”
BlackRock has talked with Hong Kong’s regulators about encouraging companies with excessive cash to return money to shareholders, Pru Bennett, head of corporate governance in the Asia-Pacific region for the U.S. money manager, said in April. BlackRock has said that investors should be compensated when a company sells most assets to change a company’s focus to a different industry.
Georgette Lee-Tong, a spokeswoman at BlackRock in Hong Kong, wasn’t
immediately available for comment on Wednesday.
G-Resources has decided to focus on the investment business after selling the mine. It has already agreed to provide a loan of up to HK$600 million ($77.3 million) to a Hong Kong-based property company, it said April 21 without naming the borrower.