(Alliance News) - Activist investor Crystal Amber Fund Ltd on Friday requisitioned a general meeting to remove six directors of Hurricane Energy PLC, including the executives and chair, and appoint two of its own.
This follows an attempt by Hurricane to be taken over via a formal sales process, which the company on Friday said is progressing well. It said it requested all participants to submit their requests by January 7.
Hurricane Energy on Friday noted the requisitioned meeting by Crystal, recommending its shareholders to take no action until further communication.
Hurricane Chair Philip Wolfe, among those Crystal Amber seeks to remove from the board, said on Friday: "Given the excellent traction we are seeing in the FSP, which the company commenced to explore all options for shareholders and to fulfil Crystal Amber's goals, the decision to issue the requisition notice at this point is simply mystifying. We note that Crystal Amber is open to bids resulting from the FSP. We encourage the participants in the FSP to submit bids in accordance with the process and look forward to updating shareholders in due course."
Crystal Amber wants to appoint Tony Buckingham and Franco Castelli as directors. They are former executives of Albion Energy Ltd. Buckingham was chief executive officer of Albion, Castelli was managing director.
Crystal aims to remove Hurricane's Chief Executive Officer Antony Maris, Chief Financial Officer Richard Chaffe, and Non-Executive Chair Philip Wolfe, as well as its own nominees Juan Morera, David Craik, John Wright, the latter two Crystal Amber managed to appoint in June 2021.
Crystal Amber has been a shareholder in the energy company since 2013, and last year it managed to oust five directors and appoint two of its own - David Craik and John Wright, who it now seeks to remove.
Meanwhile, last week Monday, Hurricane said it intended to return capital of up to USD70 million to shareholders in the first quarter of 2023, which it said it plans to vote on at a general meeting on January 11. Crystal Amber fund on Friday said the capital return would require approval by the High Court of Justice in England & Wales.
In November, Hurricane Energy launched a formal sales process and said that in the event that this doesn't result in a transaction, the company will commence the capital return programme. Back then it said that it had "multiple expressions of interest received from credible counterparties".
Hurricane in early November said: "Further distributions totalling up to USD110 million could be made during 2023 and 2024 in aggregate, with a final distribution of up to USD30 million in 2025, following the cessation of production from the Lancaster operations." The company ceased productions at Lancaster in September.
Hurricane Energy shares rose 1.0% to 7.68 pence each on Friday morning in London, while Crystal Amber Fund shares were 0.3% higher at 97.75p each.
By Tom Budszus, Alliance News reporter
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