Petrel asks shareholders to approve share issue to private equity group

(Sharecast News) - Petrel Resources dispatched a circular to shareholders on Friday, giving notice of an extraordinary general meeting to be held on 21 November, at which approval would be sought to issue 64,035,976 new ordinary shares at 1.25 euro cents per share to the 'Concert Party'.
The AIM-traded firm said the Concert Party consisted of private equity investors and friends and business acquaintances of Roger Edward Tamraz or Michel Fayad.

It explained that, should the shareholders approve, the Concert Party would then hold 51% of the issued ordinary shares of Petrel, with Fayad directly holding 7% of Petrel, Tamraz 7% and Mehraik 3.5%.

Fayad, a director of Petrel, is a private equity investor and founder of Boost Incorporated - an integrated international oil company.

Mehraik is a private investor and president of Tamoil USA, while Tamraz specialises in oil, gas and banking.

Petrel said he founded, among other ventures, Tamoil and Oil Capita, . and was a "leading figure" in the development of the SUMED and BTC pipelines.

The board said it expected that a flow of potential investment proposals would be offered to Petrel, and added that regulatory approval had been received from the Irish Takeover Panel to proceed with the proposals.

"I am absolutely delighted that we have the regulatory clearance to proceed with the increase in shareholding of the group headed up by Tamraz and Fayad to 51% of the issued share capital following the initial subscription by this group in July," said Petrel Resources chairman John Teeling.

"This group brings a wealth of oil, gas and financial expertise to Petrel, and we look forward to a potential flow of deals.

"The future looks exciting."

As at 1214 GMT, shares in Petrel Resources were down 19.24% at 5.55p in London.