21 Mar 2016 11:46
Petroneft Board offers no solutions except Poison Pill, again - Natlata says
London 21 March 2016. Natlata Partners Limited ("Natlata"), the private investment company that is the largest single shareholder in Petroneft Resources PLC ("Petroneft" or "the Company") (AIM: PTR) notes that the Board of Petroneft has finally called an Extraordinary General meeting ("EGM") in accordance with our requisition of 17 February 2016.
Natlata is studying the circular and will be responding in detail with a detailed letter to all shareholders that outlines its vision for the Company. As expected the Board's circular contains vague and misleading allegations about Natlata and its proposals.
It is immediately apparent that the Board offers no solutions of its own, except spending more money, with a shareholder loan of $35m offered by Farmout partner Oil India, with certain conditions attached. This is similar tactics to what the Board tried in 2014, when last challenged by Natlata. The result of that strategy is clear for all to see, with $45m spent for no material increase in production, and worse, only half of that production now accrues to PetroNeft.
Maxim Korobov, Natlata's controlling shareholder, said, "The Board of PetroNeft are continuing to refuse to face the facts and recognise that they are to blame for getting the Company into the current poor financial situation. Over the last two years they have spent $45m to end up with half the production accruing to the company and its shareholders. This gross mismanagement has to stop, and it needs to stop right now.
"Our proposals are aimed solely at unlocking the value of company for the benefit of all shareholders. In the next week we will be sending out our response and look to having a full and open discussion with shareholders in the run-up to the EGM."
ENDS
About Natlata Partners Limited
Natlata Partners is a private investment company that seeks out investments with a focus on Russia and CIS countries that appear to be distressed or are at an early stage of development and which will clearly benefit from effective management and proven sector experience. For more information about Natlata and our investments please contact info@natlata.com. More information can be found at www.natlata.com.
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