Max Petroleum: AGR Energy Only Bidder For the Company – Board Recommends Sale
Max Petroleum Plc, an oil and gas company focused on Kazakhstan, announces an update on the Company’s strategic review and on the proposed Subscription by AGR Energy, further to its announcements on 22 July 2014 and 4 August 2014.
Review of strategic options and formal sale process
The review of strategic options and the formal sale process announced on 22 July 2014 continues. Its purpose remains to elicit competing, superior proposals to the Subscription. A broad process has been undertaken and as of today no such deliverable proposal has been put forward to the Board. In addition there can be no certainty that any such proposal will be made nor as to the terms on which any such proposal might be made. Parties with a potential interest in making an offer for, merging with or proposing other forms of corporate transaction with, Max Petroleum should contact the Blackstone Group International Partners LLP (see contact details below).
General Meeting
It is expected that the general meeting at which Shareholders will vote to approve the proposed Subscription by AGR Energy will take place in October.
The Directors of the Company continue to believe that, absent any other superior deliverable proposal, the Subscription is the best option available to the Company, and if the relevant resolutions are not approved at the general meeting, it is the intention of Robert B Holland III, James A Jeffs, David R Belding and Maksut S Narikbayev to resign their positions at the Company with immediate effect following the general meeting.
Robert B. Holland III, Chief Executive Officer, commented:
“The AGR Energy deal is the only deliverable proposal on the table and, assuming that continues to be the case, the Board currently expects to recommend it to Shareholders unanimously. The Board had hoped the general meeting to consider the Subscription would be held on the same day as the AGM. As that will not be possible, the Board wishes that Shareholders be aware, when casting votes at the AGM, that all the current Directors save Malcolm Butler intend to resign in the event that Shareholders fail to approve the Subscription so that Shareholders could then put in place whatever Board they wish to pursue whatever alternative strategy they may prefer.”
