Russian oil explorer Urals Energy said the prospective takeover launched earlier this year has now been dropped.
The AIM-listed firm had received a non-binding offer of 12.25p per share for the firm from an unnamed party, just days two major shareholders tried to force boardroom changes through.
An extraordinary general meeting has been organised for January 27, but now following questions over debt repayment and a police raid on the firm’s offices in Moscow, the proposed takeover has been scrapped.
However, the board of the oil group – which has stakes in the Petrosakh and ArticNeft licences in Russia – said it had been in talks with investor Adler Impex, which now owned 25% of the firm and was backing the board at the forthcoming EGM.
“Unfortunately the recent attempts by certain parties to destabilise the company through the alleged debt repayment document and recent police visit to the Company’s Moscow office has created a considerable amount of uncertainty for shareholders and the third party who were considering making an offer for the company,” said Urals chairman Andrew Shrager.
“The board continues to believe that the interests of shareholders are best served by voting against the resolutions to be proposed at the extraordinary general meeting convened for 27 January 2014.
“The board, who are delighted with the support of the company’s 25% shareholder, will be writing to shareholders early in the New Year to set out again the reasons why shareholders should vote against the resolutions.”