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UPDATE 3-JKX bars two investors from board shake-up decision

Mon, 25th Jan 2016 15:57

(Adds Eclairs declined to comment, control details from courtdocument)

By Esha Vaish and Vladimir Soldatkin

Jan 25 (Reuters) - JKX Oil & Gas Plc, whosesecond-largest investor is seeking a board shake-up, said it hadissued notices to two of its top shareholders, restricting themfrom attending or voting at a general meeting later this week.

JKX said it had taken the action against Eclairs Group Ltdand Glengary Overseas Ltd after enquiries into the ownershipstructures and voting arrangements relating to their respective27.47 percent and 11.42 percent interests had "not been able toascertain full and accurate particulars".

Eclairs is controlled by trusts associated with prominentUkrainian businessman Ihor Kolomoisky and his associate GennadiyBogolyubov, according to a UK Supreme Court document.

A spokesman for Eclairs, JKX's largest investor, declined tocomment.

Glengary is controlled by Alexander Zhukov, according to thecourt document. Reuters was not immediately able to contactKolomoisky, Bogolyubov or Zhukov.

Shareholders in JKX are due to vote on Thursday on proposalsby Proxima Capital Group Inc, which is seeking the removal ofseven of JFX's nine directors, including its chairman, chiefexecutive and finance director.

JKX has had a tumultuous few years, hurt by low oil prices and growing political tensions between Russia andUkraine, its two main markets. Its shares have tumbled more than90 percent over the past five years.

The company has repeatedly called on shareholders to rejectthe proposals by Proxima, which owns nearly a fifth of JKX. Thecompany's position has been backed by shareholder advisory firmInstitutional Shareholder Services.

"We are not privy to the detailed reasoning of how the boardof JKX have come to their decision to disenfranchiseshareholders representing nearly 40 percent of the ownership oftheir company," Proxima CEO Vladimir Tatarchuk said in an email.

"We call on the JKX board to ensure that all shareholdersare given the opportunity to vote on critical issues affectingthe company's future."

Eclairs spearheaded its own revolt against JKX's board in2013. At the time JKX suspended its right to vote at generalmeetings and restricted its right of transfer. Eclairs wasultimately unsuccessful in its attempt to remove JKX CEO PaulDavies, who has been on the board since 1998.

Proxima has had no restrictions imposed on it and intends tovote, a company spokesman said. (Editing by Sunil Nair and Alexander Smith)

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