8th Mar 2019 17:52
LONDON (Alliance News) - Ithmar Capital Partners Ltd said on Friday it has withdrawn its resolution from Gulf Marine Services PLC's general meeting on March 18.
Gulf Marine Services provides support vehicles for the offshore oil, gas, and renewable energy sectors.
Ithmar, as well as other shareholders who hold a more than 5% stake in Gulf Marine, sent a letter to the company requesting that Ithmar's founder Faisal Belhoul, be appointed to its board.
Ithmar has now withdrawn its resolution, following Gulf's announcement earlier on Friday that it had identified USD6 million of potential annualised savings, and expects it to be realised by 2020.
Furthermore, the company is in talks with its banks and is assessing a "range of long-term refinancing options".
"As such, it is encouraged by the initial steps now taken by the board in its repositioning plan to address the company's operational performance, governance, and capital structure as described in the second circular," Ithmar said in a statement.
Seafox International Ltd on Friday, however, said it stood by its resolutions concerning Gulf Marine Services despite the company's announcement.
Seafox, which holds a 14% stake in Gulf Marine, is still looking to appoint Emirates Insurance Co Chair Abdullah Mazrui and investment banker Hisham Halbouny to Gulf Marine board as non-executive directors.
Seafox said that the USD6.0 million savings were well below its target of the USD15 million to USD20 million required, and said it believed that an overhauled board would bring the "necessary oversight required".
"Seafox has been a catalyst for positive change by putting pressure on the management and the board to deliver. In other words, what we have stated previously in terms of weaknesses are correct," the shareholder said in a statement.
Shares in Gulf Marine Services closed flat at 17.00 pence on Friday.
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Gulf Marine Services