LONDON (Alliance News) - Russia-focused oil and gas company JKX Oil & Gas PLC on Monday hit back at shareholder Proxima Capital Group over its plans to attempt to downsize the company's board and change its direction.
Ahead of a general meeting to take place on January 28, JKX said the proposals tabled by Proxima, which owns around a 20% stake in JKX, were "an attempt to seize control of JKX without making a bid for it and thereby avoiding offering a fair premium for it".
It said the changes proposed to the board, including the removal of all four of its executive directors, would remove a substantial level of experience from the board, which could harm the value of the company.
JKX added Proxima has not made its "true intentions" for JKX known despite requests to do so, adding Proxima has provided no evidence it has a "genuine plan" to enhance value for shareholders. JKX also said Proxima has no track record of managing companies in the oil and gas sector.
Proxima is seeking to remove seven of JKX's nine directors from the board and appoint five of its own nominees. JKX said it unanimously recommends shareholders vote against the proposals.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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