Petrogrand: Confirms New Board Recommends to Reject Shelton Petroleum’s Offer
On 22 January 2014, Shelton Petroleum AB made a public offer to acquire all outstanding shares in Petrogrand AB, offering 0,30 B shares in Shelton for each share in Petrogrand. On 24 February 2014 commented the Board of Petrogrand on Shelton’s offer and recommended Petrogrand’s shareholders not to accept the bid.
On 26 February 2014 Shelton has updated its offer to 0,34 B shares in Shelton for each share in Petrogrand. The Board again recommended Petrogrand’s shareholders not to accept the updated bid.
On 21 February 2014 communicated to Petrogrand concluded a cooperation agreement with Gazprom Neft. On 24 February 2014 Petrogrand has published a correction of that press release in which it was stated that neither the contractual negotiations with Gazprom Neft, the agreement itself nor the press release had been firmly authorized or approved by the Board.
The Petrogrand extraordinary general meeting on March 7 2014 resolved that the Board of Directors shall consist of five Board members in accordance with proposal 1, stated in the Notice to EGM.
The EGM resolved, in accordance with the proposal 1, to re-elect Maks Grinfeld and Mikael Wallgren as Board members. Lars Jacobsson was elected as a new member of the Board. Timur Rodionov and James Smith previous deputy directors were elected as Board members. Mikael Wallgren was appointed by the EGM to serve as chairman of the Board.
The new Board has today 10 March 2014 decided to endorse the previous Board’s recommendation to its shareholders not to accept the Shelton bid. Furthermore the new board decided to give Petrogrand’s management a mandate to continue negotiations with Gazprom Neft regarding the cooperation agreement about joint work in Muromsky 2 and Nizhnepaninsky licence areas.
