LONDON (Alliance News) - Russia-focused oil company PetroNeft Resources PLC on Wednesday said the restriction notice it had issued to activist investor Natlata Partners Ltd has been cancelled.
PetroNeft had issued restriction notices to Natlata, which has proposed removing four of Petroneft's current board and replacing them with three of its own nominees, and another company called General Invest Overseas SA.
On Wednesday, however, PetroNeft said it had cancelled the restriction notices and they will not come into effect.
Natlata noted the removal of the restrictions in a statement on Wednesday morning, saying its "legitimate rights as a shareholder are not under threat" following the decision.
On Tuesday, PetroNeft said it had noticed a new significant shareholding on its shareholder register held by a nominee company, prompting it to try to determine the ultimate beneficiary of that stake.
PetroNeft has concluded that a company called General Invest Overseas is the ultimate beneficiary of the 10.7% holding.
Since then, the company said it has asked for additional information regarding the stakes held in the company by both General Invest Overseas and Natlata, alleging both companies either made "no reply" or submitted "incomplete replies".
The restriction notices were dependent on Natlata and General Invest Overseas providing the information which had previously been requested by PetroNeft. PetroNeft said Wednesday the notices had been withdrawn based on the responses it had received from the investors.
Shareholders will vote on April 18 whether to remove Non-Executive Chairman David Golder, Chief Executive Dennis Francis, Chief Financial Officer Paul Dowling and Executive Director David Sanders.
They will also vote on whether to appoint Russian businessman Maxim Korobov, the controlling shareholder of Natlata, as the PetroNeft's new chief executive alongside two independent directors, Anthony Sacca and David Sturt. Natlata wants the two existing non-executive directors of PetroNeft, Thomas Hickey and Gerard Fagan, to remain on the board for continuity purposes.
On Tuesday afternoon, PetroNeft said corporate governance institution ISS had recommended shareholders vote against the Natlata proposals. Glass Lewis, another corporate governance advisor, also recommended against the removal of any directors, PetroNeft said.
"These independent corporate governance groups have completed detailed analysis of the situation and have taken the views of both sides into consideration," said PetroNeft Chairman David Golder.
PetroNeft shares were untraded on Wednesday morning, having last traded at 2.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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