Scirocco Energy PLC (AIM:SCIR) is to hold a general meeting due to a requisition from a shareholder calling for a formalised strategy to distribute cash proceeds from the sale of assets.
The requisition came via Forest Nominees Limited, representing shareholder G.P. (Jersey) Limited, which has an interest of some 78.97 million shares in Scirocco.
It meets the requirements to call such a meeting, and the company noted that it must now call a general meeting within 21 days of receipt and hold a meeting no more than 28 days after the date of calling the meeting.
The company said it intends to post a circular convening the general meeting to shareholders no later than 23 February 2024.
“The single proposed resolution relates to a request for the directors to put in place a strategy to distribute cash proceeds from the sale of assets to shareholders,” Scirocco said in a statement.
It added: “The board continues its review of a range of potential alternatives available to it by which it is able to deliver value to shareholders, which may include the distribution of available cash, further investments in line with its investing policy and/or the deployment of the proceeds in pursuit of a reverse takeover transaction.”
The shareholder requisition follows news that chief executive Tom Reynolds is standing down from his position, exiting the company in July, as a phase of asset selling draws to a close.
In January, Scirocco received the final tranche of payment for the sale of a minor holding in Corallian Energy which was bought by Shell.
More significantly, it is concluding the sale of biomass business EAG which is being acquired in a £2.6 million deal by private equity firm OrbeNovo Capital – with Scirocco expected to receive £702,000 of net cash proceeds.
And the company still awaits larger contingent payments from the disposal of its interest in the Ruvuma gas asset in Tanzania. The first contingent payment under that sale is expected to deliver US$3 million to Scirocco.
In late January, Scirocco chair Alastair Ferguson said: "The company is in a strong position in terms of having a clean structure, zero debt and a strong and growing cash position.
"We look forward to providing further updates on that [cash distribution] review process as appropriate."