LONDON (Alliance News) - Russian-focused oil and gas company PetroNeft Resources PLC on Monday said it has reached an agreement with activist investor Natlata Partners and will appoint two non-executive directors to its board.
PetroNeft said is has appointed Maxim Korobov as a non-executive director, while Anthony Sacca and David Sturt will become independent non-executive directors.
Korobov is the controlling shareholder of Natlata, which owns 29.5% of PetroNeft, and the investor had sought to have him appointed chief executive. Sacca and Sturt were Natlata's other two nominees to the board.
The changes will mean Chief Financial Officer Paul Dowling and Executive Director David Sanders will leave the board. Also leaving is Gerry Fagan, who had been set to keep his non-executive role under Natlata's proposals.
Chairman David Golder and Chief Executive Dennis Francis, both of whom Natlata had attempted to oust, will keep their positions.
"We are very pleased to come to a workable compromise with our largest shareholder Natlata. We feel this is the best way forward for all of the shareholders in the company," said Golder.
"Natlata has agreed to conclude an agreement with the board of PetroNeft in the best interests of all shareholders. We look forward to working with the board to develop the business and to bringing our experience in the Russian market to grow the company and increase shareholder value," Korobov said.
Shares in Petroneft were up 6.4% at 2.26 pence Monday morning, shortly after market open.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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