LONDON (Alliance News) - Maksat Arip, the founder of Exillon Energy PLC, said Monday that he no longer intends to make an offer for the company in its upcoming formal sale process.
The Russian oil producer, which put itself up for sale last month, recently said the ongoing process is proceeding as planned, and it expects to provide an update to the market on the outcome ahead of the Christmas period.
In September, Kazakh businessman Arip said he intends to participate in the auction of Exillon, after Exillon turned down his offer to re-acquire it in July. He has now decided not to take part in the auction but reserves the right to make or participate in an offer for the company in the next six months.
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 also said last week that it was unaware of and did not consent to a recent 14.9% investment in the company by Flowdale Investments Limited, owned by Russian tycoon Mikhail Gutseriyev, who fled Russia in 2007 following accusations of tax fraud and the death of his son in mysterious circumstances.
Exillon shares were down 1.6% to 252.00 pence Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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