Urals Energy: Possible Offer for up to 100 per cent of the Entire Issued Share Capital of Urals Energy
Urals Energy, the independent exploration and production company with operations in Russia, announces that following the requisition of an EGM, further details of which were announced on 25 September 2013, it will today post a notice convening an extraordinary general meeting of the Company’s shareholders for 11.00 a.m. (Cyprus time) on Monday 27 January 2014 at Evagoras Building, Office 34, 3rd floor, 31 Evagorou Avenue, Nicosia, CY-1066, Cyprus.
The key points in the Circular are:
| Removal of Ingeborg Srenger from the Board will be an ‘Event of Default’ under the Petraco Oil Company debt restructuring agreement giving Petraco the right to require immediate repayment of the amounts owing to it | |
| Urals Energy would face litigation from Petraco and this would be extremely detrimental to the Company and its shareholders | |
| Potential cash offer received at an indicative price of 12.25 pence per share for 100% of the entire issued share capital of Urals Energy | |
| Potential cash offer is subject to due diligence from a highly credible purchaser with previous Russian operational oil experience | |
| Uncertainty as to who has ultimate control and ownership of Fire East Corporation | |
| The requisitioners have failed to provide any information on their future plans for Urals Energy | |
| The Board believes that the requisitioners are planning on using the Company to acquire a high risk asset | |
| Existing management have saved Urals Energy from near bankruptcy | |
| The resolutions proposed are not in the interests of shareholders | |
| The Board of Urals Energy* recommends that shareholders vote against all the resolutions proposed by the requisitioners |
* with the exception of Mr Ranta who has abstained
Copies of the Circular convening the EGM will be posted to Shareholders today and will be available from Urals Energy’s website in accordance with Rule 20 of the AIM Rules for Companies, www.uralsenergy.com.
Tags:Urals Energy
