11th Sep 2015 11:22
LONDON (Alliance News) - Embattled Petroceltic International PLC Friday responded to the "unlawful attempt" by activist shareholder Worldview Capital Management to convene an extraordinary general meeting, and threatened to take legal action if it does not withdraw the requisition.
The requisition for the EGM by Worldview is its fourth one since the start of 2015.
"The board strongly advises shareholders to take no action in relation to the unlawful EGM. In particular, shareholders should not sign any document sent by Worldview or its advisers, including the form of proxy. The company regrets any confusion or uncertainty caused to shareholders by Worldview's ill-advised and unlawful actions," said the company in a statement.
Worldview, which owns a 29% stake in Petroceltic, has been pushing consistently for changes in the group's management and strategy throughout the year, and said on Monday that the meeting will take place on October 5 in London, after it used powers allotted to it under Irish law to convene an EGM of the company.
Worldview is attempting to block Petroceltic's proposed USD175.0 million bond issue, which Petroceltic intends to secure against the Ain Tsila gas project in Algeria, and its "unlimited borrowing powers", according to Worldview.
Worldview released a statement earlier Friday to state it had posted the circular for its requested EGM containing those two resolutions.
Petroceltic held its own EGM on Monday, but Worldview said the two resolutions it was seeking a vote on were not included, hence why it requested a separate EGM. At the time, Petroceltic said the claims were a "regrettable waste of company funds", adding it will take appropriate legal advice that the resolutions Worldview has tabled comply with Irish company law and with the company's articles of association.
On Friday, Petroceltic said its legal advisers have written to Worldview's legal advisers demanding that Worldview formally withdraw its invalid notice of EGM and also that it publicly announces such withdrawal and, at the same time, informs Petroceltic shareholders that they should take no action concerning the notice of EGM or the form of proxy provided with the Worldview circular.
"If Worldview does not do so, Petroceltic will apply to the Irish High Court so as to prevent the unlawful EGM from proceeding," said Petroceltic.
Petroceltic shares were down 0.2% to 54.25 pence per share on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
PCI.L