LONDON (Alliance News) - Maksat Arip, the founder of Russian oil producer Exillon Energy PLC, Thursday said he intends to participate in the auction of the company after its directors started a formal sale process Wednesday.
The Kazakh businessman, who is still a big shareholder, had approached Exillon at the end of July about making an offer to re-acquire it, but the company has since received other approaches and so decided to start a formal sale.
Arip's own approach was thrown into doubt after paper maker Kazakhstan Kagazy PLC said in August that it had obtained a court order freezing Arip's assets in a separate dispute.
In his statement Thursday, Arip said he was now reviewing all options but envisages taking part in the Exillon auction.
Arip, who is still a beneficiary of a 30.17% stake in Exillon, said he would remain independent of prospective participants in the sale.
The UK financial services regulator last year investigated the company and censured and fined it for not disclosing that it had paid out nearly GBP1 million on private jets, school fees and credit card payments for Arip, who at the time regularly shuttled between Russia, London and Dubai. The Financial Services Authority ruled the company hadn't technically done anything wrong in making the payments, but should have disclosed them under stock market rules.
Exillon shares were up 0.5% at 196.5 pence Thursday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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