7th Sep 2015 07:54
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.
Shares in Petroceltic were down 0.4% to 57.00 pence on Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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