06-01-2016, 10:37 AM
InterOil's troublemaker shareholder and former chief executive Phil Mulacek has started legal action in a bid to postpone the annual shareholder meetings for the Papua New Guinea gas player until after the vote on Oil Search's $US2.2 billion-plus takeover deal.
Mr Mulacek cited concerns that shareholders are being asked to vote on board nominees before they have had full disclosure on the Oil Search deal, which would hand control of InterOil's large Elk-Antelope gas resource in PNG to the Australian listed company, who would share the assets with French oil major Total.
Shareholders in US-listed InterOil are due to meet in New York on June 14 to vote on director nominations to the board, including five directors put forward by Mr Mulacek who are not endorsed by the board. The former CEO has slammed the existing board for agreeing to the terms of the takeover, which he says substantially undervalues InterOil's assets, widely seen as among the most competitive gas reserves worldwide for use in LNG exports.
InterOil, which has no producing assets, was under pressure to sell assets or itself to a rival to relieve its stretched funding position, heading into the drilling of the Antelope-7 well at its fields, which is expected to cost about $US60 million.
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In a statement released in Houston early Wednesday Australian time, Mr Mulacek pointed out that the InterOil board has repeatedly cited the supposed benefits of the Oil Search deal to InterOil shareholders as a reason to support the re-election of the current board members. But under the terms of the takeover deal, the proxy circular in connection with the meeting of shareholders in late July to approve the transaction only needs to be mailed by June 30.
"Shareholders are entitled to review the full details contained within the arrangement proxy
circular to make informed decisions about both the Oil Search Transaction and election of InterOil's Board," Mr Mulacek said in the statement.
Many retail shareholders support Mr Mulacek in his bid to get a better deal out of Oil Search and its ally Total, despite the current board having unanimously recommended the takeover to shareholders. On Monday, proxy adviser ISS recommended shareholders vote in support of the current board, although highlighted various concerns with excessive remuneration for InterOil chief executive Michael Hession and board directors.
The proceedings have been filed in the Supreme Court of Yukon, according to the statement released by Mr Mulacek's Concerned InterOil Shareholders group.
Oil Search and Total already own stakes in the Elk-Antelope gas resource, which they want to tap for the $US15 billion Papua LNG project.
Read more: http://www.smh.com.au/business/energy/fo...z4AHdxQnY2
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Mr Mulacek cited concerns that shareholders are being asked to vote on board nominees before they have had full disclosure on the Oil Search deal, which would hand control of InterOil's large Elk-Antelope gas resource in PNG to the Australian listed company, who would share the assets with French oil major Total.
Shareholders in US-listed InterOil are due to meet in New York on June 14 to vote on director nominations to the board, including five directors put forward by Mr Mulacek who are not endorsed by the board. The former CEO has slammed the existing board for agreeing to the terms of the takeover, which he says substantially undervalues InterOil's assets, widely seen as among the most competitive gas reserves worldwide for use in LNG exports.
InterOil, which has no producing assets, was under pressure to sell assets or itself to a rival to relieve its stretched funding position, heading into the drilling of the Antelope-7 well at its fields, which is expected to cost about $US60 million.
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In a statement released in Houston early Wednesday Australian time, Mr Mulacek pointed out that the InterOil board has repeatedly cited the supposed benefits of the Oil Search deal to InterOil shareholders as a reason to support the re-election of the current board members. But under the terms of the takeover deal, the proxy circular in connection with the meeting of shareholders in late July to approve the transaction only needs to be mailed by June 30.
"Shareholders are entitled to review the full details contained within the arrangement proxy
circular to make informed decisions about both the Oil Search Transaction and election of InterOil's Board," Mr Mulacek said in the statement.
Many retail shareholders support Mr Mulacek in his bid to get a better deal out of Oil Search and its ally Total, despite the current board having unanimously recommended the takeover to shareholders. On Monday, proxy adviser ISS recommended shareholders vote in support of the current board, although highlighted various concerns with excessive remuneration for InterOil chief executive Michael Hession and board directors.
The proceedings have been filed in the Supreme Court of Yukon, according to the statement released by Mr Mulacek's Concerned InterOil Shareholders group.
Oil Search and Total already own stakes in the Elk-Antelope gas resource, which they want to tap for the $US15 billion Papua LNG project.
Read more: http://www.smh.com.au/business/energy/fo...z4AHdxQnY2
Follow us: @smh on Twitter | sydneymorningherald on Facebook