16th Sep 2014 15:52
LONDON (Alliance News) - Max Petroleum PLC Tuesday said its directors intend to resign if the proposed AGR Energy deal is not accepted by shareholders, as no superior offers for a merger have been recieved by the board.
It is expected that the general meeting at which shareholders will vote to approve the proposed subscription by AGR Energy will take place in October, the company said.
All the directors of Max Petroleum, apart from Malcolm Butler, a non-executive director, have said they intend to resign from the company if the deal is not approved at the meeting "so that shareholders could then put in place whatever board they wish, to pursue whatever alternative strategy they may prefer", said Chief Executive Robert Holland.
"The AGR Energy deal is the only deliverable proposal on the table and, assuming that continues to be the case, the board currently expects to recommend it to shareholders unanimously," added Holland.
Max Petroleum said on August 4 that it had raised GBP37.1 million through a cash subscription by AGR Energy Ltd No.1, which gives the investor a 51% majority of the enlarged share capital of the company.
The Kazakhstan-focused oil and gas company said AGR conditionally subscribed for 2.3 million shares at a price of 1.64 pence per share, which was a premium of 34% to its closing middle market price of 1.225 pence on August 1.
The news came after the company announced a strategic review in late July, which it said could result in a merger, the sale of the business, a farm-down, or a disposal of its assets.
Max Petroleum's shares were untraded Tuesday, last quoted at 1.23 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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