Exillon board of directors asks shareholders to vote against chairman replacement
MOSCOW. March 5 (Interfax) - The board of directors of Exillon Energy has recommended that shareholders at an extraordinary meeting on March 19 vote against all of the proposals of shareholder Worldview Capital Management to replace the board chairman and bring three new members to the board, Exillon said in a press release.
"If all the Resolutions proposed by Worldview are passed by Shareholders, the Board believes that the effect would be to transfer a significant level of control over the Company's Board to Worldview who beneficially holds only 11.8% of the Company's Shares and has additionally procured voting rights over 2.2%. This means that Worldview would have gained an inappropriate level of influence of the Company without paying a control premium," the press release said.
"The Board also notes that the Company's share price fell approximately 10% from 146p to 132p on January 14, 2013, reducing the market valuation of the Company by approximately $38 million, the first trading day after Worldview publicized its proposed Requisition to the UK press and conducted its negative press briefings. The Board believes this price fall was a direct result of the actions taken by Worldview," the press release said.
"Shareholders holding significantly over 50% of Exillon's issued share capital have confirmed in writing to the Board and its advisers that they intend to vote against Worldview's proposals," Exillon said.
Worldview has asked Exillon to call an extraordinary shareholder meeting in order to replace the chairman of the board of directors and introduce three new non-executive directors to the board: Executive Director of British oil and gas producer Caithness Petroleum Yves Merer, Non-Executive Director of East West Petroleum Corporation James Dewar, and General Director of Worldview Capital Management Andrey Kruglykhin.
Worldview based its suggestion on the company's falling production figures and share value. Furthermore, Worldview was dissatisfied with the management of the company's production assets. In Worldview's opinion, Exillon needs to focus on production in Western Siberia, instead of the Timano-Pechora region.
Exillon, which was formerly known as Caspian Minerals plc, was established on the basis of businessman Maksat Arip's assets. The company produces oil in Western Siberia and the Timano-Pechora region.
