20th Jul 2015 06:47
LONDON (Alliance News) - The largest shareholder in Petroceltic International PLC Monday said it has called for a second extraordinary general meeting to table a resolution that will allow shareholders to vote on any material asset disposals.
Worldview Capital Management Ltd, which holds a 26.5% stake in Petroceltic, said the requisition is in addition to the request for separate EGM made last week.
On July 16, Worldview called for an EGM to discuss the company's proposed bond issue and the borrowing powers its board holds, opening a new chapter in its ongoing battle with the management and board of Petroceltic over the company's plans to pledge its "crown jewel" asset as security for a USD175 million bond issue.
Worldview had claimed Petroceltic had "run out of money" and therefore was placing its key asset, the Ain Tsila gas condensate field in Algeria, as security for the proposed bond issue, which Worldview described as "perilous to shareholders".
On Monday, Worldview said it wants to call a separate EGM to table a resolution that proposes that Petroceltic should seek approval from shareholders for any material asset disposals which represent 25% or more of the company's revenues, profits or oil and gas reserves, it said.
"Worldview, as stated in previous announcements, estimates that the company has now run out of money, and management may embark on a hurried sale of key assets to continue to fund its wasteful strategies. This may result in significant shareholder losses," said Worldview.
"To prevent equally catastrophic decisions by the current board of Petroceltic, Worldview believes that shareholders should be able to vote to approve all proposed material disposals," it added.
By Joshua Warner; [email protected]; @JoshAlliance
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