It reported that Vietnam Industrial Investments, which is listed on Australian Stock Exchange, informed the authorities that the resolution on the sale of its Vinausteel and SSE Steel to TATA Steel’s Singapore based NatSteel was lost on a poll vote by shareholders at its annual meeting on June 29th 2007.

As per the release, the results of the adjourned AGM in respect to resolution 3 for approval sale & purchase agreement are as under

Total number of proxy votes exercisable by all proxies validly appointed: 64,996,858 Total number of proxy votes in respect of which the appointments specified that the proxy
(a) is to vote for the resolution 25,995,226
(b) is to vote against the resolution 39,001,632
(c) is to abstain on the resolution Nil
(d) may vote at the proxy’s discretion Nil

Total number of votes cast on the poll
(a) In favor of the resolution 25,995,226
(b) Against the resolution 41,988,632
(c) Abstaining on the resolution Nil

TATA Steel announced in March 2007 that NatSteel would acquire 100% stake in a 250,000 tonne bar & wire rod mill of SSE Steel and 70% in Vinausteel, which produces 180,000 tonnes of reinforcing bars. The transaction was to be completed by June 2007. But, Prudential Vietnam Securities Investment Fund Management Company launched an unsolicited offer of USD 13.3 million, 10.65% higher than NatSteel’s, to acquire a majority stake in the two companies in May 2007.

As this would have amounted to a breach of contract with NatSteel’s earlier sale and purchase agreement, Vietnam Industrial Investment’s independent directors had recommended that shareholders vote on NatSteel’s sale and purchase agreement and not that of Prudential.