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Energy company PT Ancora Indonesia Resources failed to gain approval on Friday from the capital markets regulator for an extraordinary shareholders meeting to clear its Rp 117 billion ($11.7 million) right issue, derailing a meeting scheduled on the same day to vote on the plan.

Even if the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) had given the green light, Ancora’s plan would have failed because of an expected lack of minority equity holders to attend the meeting, with only 0.0015 percent of the company’s total shares to be represented.

The low turnout was blamed on the regulator waiting until the last minute to reject the request, which was issued at the end of July.

“The number of minority shareholders was not enough to meet the minimum requirement, and approval from Bapepam has yet to be obtained,” Ancora’s president director Usman Darus said late on Friday. According to the Capital Market Law, 50 percent approval is needed from minority equity holders.

The company had planned to use the proposed September rights issue to raise its majority share in explosives raw material producer PT Multi Nitrotama Kimia. Ancora is currently being investigated by Bapepam over alleged irregularities in its previous rights issue last year.

“The company expected to obtain approval from Bapepam by Friday, therefore they also planned to hold the meeting,” said Hendra, a minority investor in Ancora.

Usman said the company had initially expected Bapepam approval for the shareholders’ meeting to be given by Thursday.

Usman said the company planned another extraordinary shareholders’ meeting within the next three weeks if Bapepam signed off.

“According to the regulation, we could reschedule another meeting after 10 to 21 days,” he said.

Ancora also wanted to use part of the rights issue to inject capital into MKN, which plans to expand its production capacity with a new Rp 600 billion nitric acid plant.

Usman added that MNK was to issue as much as Rp 450 billion in bonds in the fourth quarter to fund the expansion, with the balance coming from Ancora.

In other news, the company is still seeking to brank out into coal production, Usman said.

“Out of the five coal firms that we had been eyeing, it is down to just one in Kalimantan,” he said.

Ancora is still performing due diligence on the coal producer, and is negotiating over the price. It expects to fund the acquisition with company capital.

The coal company’s production “volume is about 60 million metric tons of low to middle quality coal,” Usman said.