Petroceltic seeks to adjourn EGM as talks with Worldview continue

Dublin-based oil and gas exploration group Petroceltic, which has been in dispute with its single biggest shareholder Worldview over a $100 million share placing, has said it is seeking to adjourn its Extraordinary General Meeting (EGM) following discussions between it and the Swiss-based group.

Worldview, which holds a 17 per cent stake in Petroceltic, said the group’s recent share placing contained a number of corporate governance failings and should be rejected at the EGM, which was to be held on Monday.

However, in a statement issued to the London Stock Exchange, the group said it was intending to adjourn the proposed meeting until June 16th to allow for discussions between the two side to continue.

Worldview, which holds a 17 per cent stake in Petroceltic, said the Dublin-based group’s $100 million share placing contained a number of corporate governance failings and should be rejected at the EGM.

Petroceltic has strongly refuted claims the placing is not in shareholders’ interests, and denied corporate governance failings. The company said the placing had allowed them to bring in a strategic investor and to diversify its shareholder base

The explorer plans to start trading on London’s main stock exchange in July after it raises $100 million from the share sale. The funding is expected to drive growth.

Petroceltic placed 37.9 million shares at a price of 157 pence (192 cents) on Friday, May 16th, with investment company Dovenby Capital subscribing for $50 million (€36.4 million) of the placed shares, giving it an 8.88 per cent stake in the group.

While the placing was at a premium to the previous day’s closing price, Worldview claims it made an offer prior to the placing to subscribe for up to $100 million of new ordinary shares at 162 pence per share. The offer was rejected by Petroceltic’s board.

The company denied allegations of corporate governance failings and said the placing structure it had proposed was one that “is commonly used by public companies and widely accepted as providing a secure and swift method of raising funds.”