Reabold Resources said it has received a request from Pershing Nominees, which owns approximately 6.93% of the company's shares, 'purportedly' calling for an extraordinary general meeting (EGM) to remove the entire board and replace it with their own nominees.
In a statement, Reabold said its board believes the motive of the requisitioning party is to ‘opportunistically gain control of your company and its significant cash and assets, without paying a control premium’.
“The board notes that a number of the proposed new directors have a track record of exceptional value destruction in quoted oil and gas and resource companies," it added.
Reabold noted that legal advice it has received has pointed to several deficiencies in the documentation and that therefore it is not a valid requisition notice under section 303 of the Companies Act 2006.
“The company has written to Pershing as to the actions it needs to take to validly call a general meeting and has invited Pershing to procure that a valid request under section 303 is submitted.
“If and when the company receives a valid requisition notice from Pershing, the board will respond to it in accordance with the Act and will share its views on the proposals with shareholders,” Reabold said.
Reabold recently concluded the sale of a 49.99% stake in the Victory field to Shell PLC (LSE:SHEL, NYSE:SHEL) for a net £12.7mln that also saw it acquire a batch of other North Sea exploration interests.