9th Feb 2023 13:45
(Alliance News) - Wentworth Resources PLC on Thursday it received notification from minority shareholder Fidelity International that it intends to vote against the acquisition agreement, in which Wentworth plans to sell its entire share capital to Etablissements Maurel & Prom SA.
Fidelity International has direct and indirect interests in 21.2 million shares, or 12% of issued share capital.
Wentworth, the Tanzania-focused natural gas production company, noted it reached an agreement with Maurel & Prom back in December to sell all of its shares for 32.5 pence each, or around GBP61.7 million in total.
Shares in Wentworth were up 1.0% to 31.20 pence each in London on Thursday afternoon.
Maurel & Prom is a Paris-listed and based oil company focused on the production of hydrocarbons.
Wentworth said it required a three-quarter supermajority of all shareholder voting rights at a court meeting to approve the acquisition and allow it to proceed. Further, a resolution must be passed at a general meeting to authorise directors to implement the scheme, alongside dealing with aniciliary matters.
This would involve a further vote, requiring a two-thirds supermajority of votes cast at the general meeting, either in person or by proxy.
Wentworth said the court meeting and general meeting are due to be held on February 23 at Ashurst LLP's offices in London.
"The board notes Fidelity's intention to vote against the acquisition," said Wentworth Chair Tim Bushell. "The board, having evaluated both the potential of Wentworth as an ongoing business and all other strategic options, recommends that shareholders vote in favour of the scheme at the court meeting and the resolutions to be proposed at the general meeting."
On Friday last week, Wentworth said advisors from an independent proxy advisory firm recommended that shareholders vote in favour of the planned takeover. Wentworth added it expected the deal to complete in the second quarter of 2023.
By Greg Rosenvinge, Alliance News reporter
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