Senrigan Capital Management and Nicholas R. Taylor first lobbed a concern to the takeovers panel on Tuesday, saying it would dilute their shareholding.

Yesterday two other minor shareholders Mt Vincent Holdings and Osendo, which  Noble Group subsidiaries and own 13.6% of Yancoal’s shares, also expressed dilution concerns.

“They submit that the entitlement offer is unacceptably dilutive and disproportionately affects the interest of existing minority shareholders and is highly unattractive to new investors,” the Takeovers Panel said.

“The applicants have sought interim orders that Yancoal be restrained from taking any action to pursue or undertake the entitlement offer, placement, underwriting and conversion of subordinated capital notes (SCNs) until termination of the proceedings.

“The applicants have sought final orders including orders preventing the entitlement offer, placement, underwriting and conversion of SCNs proceeding on the terms announced or substantially similar terms.” Yancoal told the Takeovers Panel that would not process any applications received in relation to the entitlement offer until the earliest of August 18, an order of the Panel otherwise preventing processing and the determination of the proceedings.

Mt Vincent Holdings and Osendo together own 13.6% of Yancoal’s shares.