21st May 2015 10:38
LONDON (Alliance News) - New World Oil and Gas PLC shares remained suspended from trading on AIM Thursday due to a delay of a share transaction that has caused confusion among shareholders who voted against a proposed placing at the company's extraordinary general meeting on Tuesday.
At the meeting, shareholders rejected a conditional placing which the company conducted in April of over GBP2.72 billion new shares at 0.055 pence which was the centre of confusion about one participant in the placing.
The company's shares were already suspended and were meant to resume trading once the results of the EGM were announced, but will now remain suspended due to delays in share transactions.
After the proposed placing was announced, New World said Judith Williams, a new investor, had purchased over 342.3 million shares in the company which caused the company to look into William's acquisition of shares, including whether there were any regulatory implications and what her intention was.
The company said it was unsure what stake Williams held as it was unclear whether it would be based on the original share capital or the enlarged issued share capital following the placing, which has now not been rejected by shareholders.
Last Thursday, before the EGM, Williams was confirmed to have a 35.63% stake in the company, which under UK takeover rules would usually mean she would be required to make a cash offer to all other stakeholders.
That was followed by a statement on Monday that said Williams held 182.3 million shares, or a 25.94% stake in the company.
However, on Wednesday the company clarified that Judith Williams only had an interest in 173.1 million shares in the company, or a 24.63% interest in the company, below the threshold which would have forced her to make a takeover offer for the company. But this also suggests that she has not received all the shares she had purchased.
The London Stock Exchange Thursday said shares in New World will remain suspended despite the results of the EGM being announced due to "delays in the settlement of transactions in the shares of New World Oil". The LSE said it also was "monitoring the settlement situation in this security which has continued to deteriorate."
The stake that Williams holds in the company is likely to change again dependent on the delivery of shares, and because the placing was rejected.
Last Wednesday the Mail Online reported that the purchase had actually been conducted by Williams' son, who thought he was only purchasing a 10% stake in the company before realising that his mother may be required to launch a full offer for the company.
As the placing was placing rejected by shareholders, the company will have to rely on the open offer to raise cash, which Cornhill Capital, the placing agent, has agreed to underwrite for up to GBP1.5 million. It said it will provide information on the intended open offer and other matters under consideration at a later stage.
The EGM results were delayed due to the recent high volume of trading in the company's shares and the requirement to reconcile holdings to the register as at the prescribed time on the record date for the meeting, causing a delay in collecting the results.
By Joshua Warner; [email protected]; @JoshAlliance
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