Reabold Resources shareholders have voted against a second attempt to oust the company’s management and board.
Reabold (AIM:RBD) held a meeting on Wednesday which saw shareholders vote conclusively against a series of resolutions to replace its management and directors.
A group led by Kamran Sattar of Portillion Capital launched its latest requisition bid in early November, claiming his cohort had “lost all confidence” in the company’s board.
The group of 13 shareholders, known as the Reabold Requisition and representing around 8% of the company’s share capital, called for the removal of the company’s co-CEOs and directors, and the appointment of Mr Sattar as chairman and Andrea Cattaneo – founder of Africa-focused Zenith Energy – as chief executive.
Around 20-21% of voters supported the proposals – below the majority required to pass and less than the nearly 25% who supported Mr Sattar’s previous requisition in November 2022.
Shareholders representing around 65% of the company’s share capital took part.
Reabold’s non-exec chairman Jeremy Edelman said the result showed “resounding support” for the existing board.
“The results represent an even greater margin of votes against the requisitioning shareholders’ resolutions than was the case at the last requisitioned general meeting in November 2022,” he added.
Mr Sattar has also been approached for comment.
‘Opportunistic’ takeover or rescue plan?
Late 2023 saw an escalating war of words between the two factions, as Reabold’s board and co-CEOs Stephen Williams and Sachin Oza advised shareholders to vote against all proposals, which they allege were part of an “opportunistic” takeover bid in the wake of a major deal with Shell.
They also alleged the appointment of Mr Cattaneo posed a “very significant” conflict of interest, given Zenith’s status as a competitor and its historic interested in Reabold California, amid similar concerns over Portillion’s ownership in US-based Daybreak Oil and Gas.
Reabold’s portfolio includes interests in several onshore and offshore sites across the UK – including North Sea interests at Dunrobin, Golspie, Oulton, Laxford and Scourie – as well as Romania, USA and Italy.
Mr Sattar and Mr Cattaneo said they had sought a change of leadership to avert the “certain disaster that awaits the company if the current ‘strategy’ of misguided investments is allowed to continue.”
In particular, they criticised Reabold’s commitment to the Colle Santo gas project in Italy, which they maintain “will likely never produce”.
Instead they proposed a plan to place all company resources into drilling at its onshore West Newton site in the UK, whilst seeking to “salvage” the rest of the portfolio and “drastically reducing costs.”
Third time lucky
The outcome leaves Reabold with breathing room to pursue its plans at West Newton and Colle Santo in 2024, though Mr Edelman condemned the “costly distraction” of the requisition process.
“This process has, once again, been a serious and costly distraction for Reabold, significantly delaying the management team’s ability to execute the company’s strategy,” he stated.
“The board believes the company is well positioned with its portfolio of strategic gas assets and strong cash position. The company’s efforts can now be entirely directed towards unlocking this value for all shareholders.”
Yet Mr Sattar has previously stated that should the January 10 vote be unsuccessful, his group will be “unrelenting” in its efforts – and a third requisition will be called.
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