As the New Year dawns a North Sea firm is facing a boardroom coup attempt instigated by investors based in London as Scotland counts the cost of moves made by financiers on other firms.
Reabold Resources has found itself in the crosshairs after shooting to prominence last year when a bet the company made on an undeveloped find West of Shetland paid off big time.
The company received a $5 million (£4m) payment on account last month in respect of a deal it clinched that involved Shell buying a controlling stake in the Victory find for £32m.
This provided stunning vindication for Reabold directors’ belief that Victory had potential others had missed.
The deal left Reabold sitting on a portfolio of exploration interests in the North Sea and other areas as well as lots of cash.
However, in November, Reabold announced that shareholders had initiated an action seeking to replace the company’s directors with their nominees.
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Reabold’s board has claimed that the shareholders concerned are attempting to gain control of the company, its operational asset base and its cash, without paying a control premium.
The rebel shareholders are led by Portillion Capital’s Kamran Sattar. They have claimed change is needed at Reabold to create sustainable value for all shareholders and have cited concerns over issues such as executive pay and the management of the firm’s portfolio. This includes assets in Italy and the USA.
The affair will come to a head at a general meeting in London on January 10 when shareholders will vote on resolutions about the proposed boardroom changes.
Advisory services ISS and Glass Lewis have recommended that shareholders vote against the resolutions.
Reabold is a relative minnow in the oil and gas business. However, defeat for its board may have ramifications for Scotland. The rebel shareholders want Reabold to pay out £3.75m in dividends and share buy-backs. They have said Reabold’s North........