Petroceltic rules out EGM vote on debt financing plan

Petroceltic has ruled out holding a shareholder vote on its proposed debt financing round, which is expected to raise around $175m (€160m) by the end of this month.

Petroceltic rules out EGM vote on debt financing plan

An EGM, on the matter, had been called for by activist investor, fund manager Worldview Capital Management, which owns nearly 30% of the Dublin-based exploration firm.

The proceeds will go towards paying down existing debt and funding the headline Ain Tsila gas field asset in Algeria.

Worldview has criticised the Irish firm’s ability to repay such debt, saying that it puts the ownership of such company assets as Ain Tsila at risk.

It has also expressed concern over the scale of Petroceltic’s unrestrictied borrowing powers. Petroceltic has taken advice over the need for an EGM on the matter and said that no such meeting is warranted.

The company is due to hold its AGM in Dublin on Friday.

However, even before Petroceltic had made its announcement, yesterday, Worldview called for a second EGM (although it is yet to formally lodge the second request with Petroceltic). The Swiss fund manager is concerned about Petroceltic’s financial reserves and fears “a hurried sale of key assets” will be necessary in order to repay debt.

It now wants an EGM in order to pass a resolution that will see shareholders vote on all proposed material disposals in the future.

In response, Petroceltic noted that – under Irish and London Stock Exchange rules – it is already required to seek shareholder approval, by way of ordinary resolution, for disposals resulting in a “fundamental change of business”.

More in this section

Budget 2022 Logo

What impact will this  year's budget have on you and your business.

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo
IE-logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up