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IN PHOTO: High voltage power lines stand near an electricity substation on the outskirts of Sydney, about 40 kilometres (26 miles) west of the city's centre, in this September 30, 2004 file photo. SP AusNet, the Australian unit of Singapore Power Ltd., is raising up to A$1.6 billion ($1.17 billion) via a long-awaited initial public offering to be listed in Sydney. The maximum offer price will be A$1.57 per share and the indicative IPO price range for institutional investors is A$1.29 to A$1.57, according to the prospectus of the Web site of the Monetary Authority of Singapore November 7, 2005 . Several Asian power utilities are angling to list their Australian power assets acquired in recent years, aiming to lure investors with solid dividend yields in Asia's most developed electricity market. REUTERS/Tim Wimborne/Files

In a move to establish authority and build power on Australian Securities Exchange, a group of Chinese investors are trying to follow the U.S. method of activist investment by buying major chunk of the shares in order to influence the company to its own benefit.

ABC news reported that the corporate world was left aghast on the removal of AusNet independent director Tony lanello. This has enraged the minority shareholders of the company given the fact that he was proposed for re-election by the AusNet board and has raised questions on the governance of the company. Ianello was spearheading an attempt to bid for the NSW electricity transmission group Transgrid, which would be auctioned soon.

The two major shareholders of AusNet, China State Grid Corporation and Singapore Power, together hold 51 percent share of the company. These two shareholders were reportedly appalled at belting out about AU$9 billion for the bid and were not at all interested at the prospect for their own vested reasons. Thus, these two shareholder joined hands at the annual meeting of the company for the re-election of lanello and voted against him.

While Singapore Power doesn’t want to take part in any form of bidding, the association of China State Grid Corporation, with yet another Transgrid bidding conglomerate, led it to vote against lanello since it is not willing to bid against itself. This move has caused apprehensions among the shareholders as to whether it would be possible to find and elect another candidate who would take into account the interest of all the shareholders since the company is now facing a shortage of independent board members.

The Financial Review reported that a letter was sent to the independent directors of AusNet by Singapore Power. It stated the terms and conditions for the bidding and threatened that if they are not followed, it would do everything in its power to stop the bidding.

Wayne McCrae, the founder of the now cash strapped Cudeco, was also removed from his chair by three Chinese investors, China Oceanwide International Investment Co, Sinosteel Equipment and Engineering and New Apex Asia Investment. The decision to terminate him came after a failure to raise capital last month due to the plunging copper prices.

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