LONDON (Alliance News) - Exillon Energy PLC Friday said five members of its board will resign after management told them that they'd lost operational control of the company to Rusoil Group.
The Russian oil producer said Chairman David Herbert, Chief Executive Officer Mark Martin, Senior Independent Director Stuart Detmer, Independent Director Anne Belveze and Independent Director Ezio Bracco intend to resign Friday.
"We were informed by Exillon's Chief Executive Mark Martin that he was no longer able to exercise practical control over the company's operations and assets without the support of the newly appointed Directors who are nominees of the Rusoil Group," Herbert said in a statement.
The company said that Deputy Chief Executive Officer Alexander Suchkov and Non-Executive Director Sergey Koshelenko, who were recommended to the board in January by Seneal International Agency Ltd., will remain as directors.
In December, the company's founder, Kazakh businessman Maksat Arip, sold a 29.99% interest in the company to Seneal, which is ultimately controlled by major Russian property investor Alexei Khotin who is the ultimate beneficial controller of Russian oil producer Rusoil group.
Also In December, Exillon said it had decided to terminate a formal sale process it had started in September. At the time, the company said two major Russian businesses were competing to make a possible offer, and it would continue to work on delivering an offer for the entire issued share capital of the company outside the framework of the formal sale process.
Exillon said Friday that it requires a minimum of three directors to operate and so it intends to appoint a new Executive Director, Pavel Chernienko, to the board immediately. Chiernienko is currently the Deputy Chief Executive of Rusoil.
Earlier in March, the company also said that it is now considering a secondary listing on the MICEX stock exchange in Moscow to facilitate investment by Russian investors, but said London will remain its primary listing location.
Exillon Energy shares were down 9.7% to 131.00 pence Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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