Capricorn Energy plc said it had received a requisition notice from one of its investors to convene a general meeting to consider resolutions to remove certain directors of the board.
DIRECTORS
Palliser Capital Master Fund Ltd, which holds approximately 6% of the company, called for the removal of chief executive officer Simon Thomson, chief financial officer James Smith, non-executive chair Nicoletta Giadrossi, non-executive directors Peter Kallos, Keith Lough, Luis Araujo and Alison Wood.
The shareholder called for the appointment of six proposed candidates.
Capricorn said it was considering the content and legality of the requisition notice and reaffirmed its support for the directors.
The company also rejected that the proposed resolutions were in the best interests of shareholders.
PLANNED MERGER
The news comes as Capricorn published reasons for its proposed merger with Israeli energy limited partnership, NewMed Energy.
Reasons given include, among other points, the return of $620 million in cash to shareholders as well as equity in the “largest gas-focused, UK-listed energy company on the LSE premium segment,” positioned for gas demand in MENA and Europe.
Capricorn said that the new entity expected to double production by 2030, driven by the Leviathan expansion project, development of the Aphrodite field and production growth from the Western Desert portfolio in Egypt.
Capricorn previously proposed to merge with Tullow Oil plc, to which Palliser also objected, but both energy companies cancelled the plans.