THE staff at Total Corrosion Control have taken an unusually assertive role in challenging plans for a back-door listing of the Kwinana-based company on the Australian Stock Exchange.
A group of 15 staff staged a sit-in last Friday at the West Perth office of shell company mBox.com, which is the vehicle for the proposed backdoor listing.
An open letter from the employees said they felt “safe and secure” working for a “family-focused” company.
“We do not believe the merger is a positive step in ensuring our long-term employment with the company,” the letter states.
mBox.com announced earlier this month that it had signed a conditional agreement to acquire 100 per cent of Total Corrosion Control.
The announcement made no reference to a major rift between two blocs of shareholders at TCC.
Managing director Terry Iannello and his business partners Tony Iannello and Sam Cinalli are opposed to the deal in its current form, which has been backed by investors Gavin and David Argyle.
Mr Iannello has taken action in the Federal Court against the Argyle’s family company First Distribution Services to try and wrest back control of TCC.
During court proceedings it was claimed the Argyles wanted to merge TCC with its major competitor Fero Industries.
This would give Fero a near monopoly in the industrial coatings market, following last year’s acquisition of a third company, Novacoat.
In the latest legal manoeuvres, the Argyles have agreed that TCC should be able to obtain independent legal and financial advice prior to the directors of TCC voting on the proposed transaction.
They also agreed to sell their entire shareholding in mBox.com.
mBox.com chairman Paul Price told WA Business News the mBox.com directors would also proceed with a detailed assessment of the transaction.
