7th Sep 2015 12:38
LONDON (Alliance News) - Worldview Capital Management on Monday said it has convened an extraordinary general meeting for Petroceltic International PLC shareholders for next month, the latest in a long-running battle between the activist investor and the oil and gas company.
Worldview, which owns a 29% stake in Petroceltic and which has been pushing consistently for changes in the group's management and strategy, said the meeting will take place on October 5 in London.
The meeting will allow shareholders vote on resolutions regarding the company's proposed USD175.0 million bond issue and its "unlimited borrowing powers", according to Worldview.
Worldview is calling for shareholders to approve a plan which would restrict Petroceltic's power to dispose of assets in the future. The investor also has claimed the Petroceltic's USD175.0 million bond issue, which would use the Ain Tsila gas development in Algeria as security, was "perilous to shareholders". In early August, Petroceltic had said it would suspend formal marketing of the bond issue, due to market conditions.
The EGM comes after Worldview escalated its battle with Petroceltic in August when it published an open letter to the company on "public allegations" about Project Director Geoff Stevenson, who is in charge of the company's Ain Tsila gas field development in Algeria.
Those allegations were based on posts published by a blogger. Following the publication of the Worldview letter, Petroceltic took action in Ireland to ascertain the identity of the blogger and was successful in having the site taken down after a judge ruled the material on the blog was defamatory to Petroceltic.
Petroceltic responded to Worldview statements later in the day on Monday, saying it intends to take legal advice to ensure Worldview's requisition of a meeting complies with Irish company law and the company's articles of association.
It also said Worldview's statement that it will not support any further financings by the company until its board resigns "clearly demonstrates its desire to gain control of the company without paying fair value which is to the detriment of the majority of shareholders".
Petroceltic also said it has completed its investigation into the blogger allegations and found the accusations were "false and considered defamatory". It said the Irish High Court has ordered the blog be taken down and the blogger identified, though this has not yet been complied with.
The company also noted the existence of another website containing allegations about its Bulgarian operations and said it will now look into these allegations to see whether any merit a full investigation.
Shares in Petroceltic were up 4.4% to 59.75 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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