Worldview claims support for Petroceltic challenge

The activist investor challenging boardroom control at Irish exploration firm, Petroceltic has claimed support is growing for its endeavours.

Swiss-domiciled investment fund manager Worldview Capital Management holds a 29% stake in Petroceltic and has, over several months, been waging a campaign to overhaul the Irish firm’s board and change its borrowing and disposal powers.

Worldview’s attempts to hold an EGM, targeted for last Monday, to block Petroceltic’s debt raising plans and increase its borrowing limits was halted via a temporary injunction by the Irish High Court last month after Petroceltic challenged the legality of the call.

Despite the move, Worldview now says support for its views is growing, with over 41% of Petroceltic’s share register agreeing with its feelings regarding the bond issuance and borrowing powers.

In a statement, Worldview said 9% shareholder Dovenby Capital Ltd, the investment vehicle of Malaysian businessman, Dato Ahmad Fuad, supports its position, as does a further number of shareholders “accounting for approximately 3% of the company’s share capital” who have indicated so to Worldview.

“While Worldview regrets the Irish court’s recent interim decision to prevent shareholders expressing their opinions on such important topics until a final determination of the board’s challenge, it continues to respect the court’s decision and looks forward to the case being heard in full,” said Worldview.

Petroceltic said, it still plans to raise extra debt financing before this year and expects to recommence marketing in relation to a bond issue or equivalent financing “in the near future, subject to market conditions”.