Palliser Capital reports more Capricorn Energy shareholders have backed its plans to remove the board and scrap proposed merger plans with NewMed Energy.
The activist investor now says it has received support from 39% of Capricorn’s shareholders. It notes support from Irenic Capital Management, VR Global Partners and an unnamed shareholder.
Palliser said the impact of this 39% would grow when considering the average turnout at Capricorn’s general meetings.
Legal & General, which owns a 4% stake in Capricorn, has also spoken out against the gas company’s plans. According to a report in The Times, it has said that a change of directors is “warranted”.
Palliser has said Capricorn must hold an EGM before the end of January. It seeks to remove seven of Capricorn’s directors, including CEO Simon Thomson and the CFO.
It has named six alternative directors who could step up to take Capricorn in a new direction, which may involve some degree of liquidation and returning cash to shareholders.
Irenic CIO Adam Katz spoke in favour of Palliser’s plans on December 20. An EGM at Capricorn would offer its shareholders “a much-needed opportunity to reconstitute a majority of the company’s board”, Katz said. “Like many of our fellow shareholders, we strongly oppose the Company’s currently proposed merger with NewMed Energy Limited Partnership.”
Capricorn earlier this year had planned to merge with Tullow Oil. It scrapped this plan in late September in favour of the NewMed combination.