Panel Publishes Reasons for its Decision in Relation to Application for Review by Majestic Resources

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The Namakwa 4 Panel has today published its reasons for its decision to decline to commence proceedings to consider an application for review by Majestic Resources (Majestic) of the decision of the sitting Panel in Namakwa 3. The application concerned a valuation in Namakwa Diamond Company NL's (Namakwa) target's statement issued in response to the takeover bid announced by Majestic on 15 March 2001 for all of the shares in Namakwa. The application for review was made by Majestic, on 15 May 2001 and the Panel announced its decision on 30 May 2001. Majestic had made the Namakwa 3 application.

The Namakwa 4 Panel decided that the Namakwa 3 decision was consistent with the decision in Namakwa 2. It considered that the deficiencies that the Namakwa 2 Panel identified in Majestic's bidder's statement were materially different to those alleged in the Namakwa 3 application. The Namakwa 3 application alleged deficiencies in Namakwa's target's statement in the valuation of Namakwa of shares.

The Namakwa 4 Panel decided that the valuation criticised by Majestic in Namakwa 3 contained sufficient description of the assumptions used in the valuation to enable readers to assess the uncertainties in those assumptions and the valuation.

The Namakwa 4 Panel agreed with the Namakwa 3 Panel's view that the nature of the matters raised in Majestic's application meant that they may be appropriately raised by Majestic in a response to Namakwa's target's statement.

The sitting Panel for this matter was Simon McKeon (President), Professor Ian Ramsay (sitting Deputy President) and Elizabeth Alexander AO.

The Namakwa 4 Panel's reasons for decision are available on the Panel's website: .

Nigel Morris
Director, Corporations and Securities Panel
Level 47 Nauru House
80 Collins Street
Melbourne VIC 3000
Ph: +61 3 9655 3501