Urals Energy bounces as rival takeover bid emerges

14th Oct 2013 13:48

Russian oil explorer Urals Energy has received a cash bid from an unnamed investor that could thwart the takeover aspirations of a rival pair of shareholders. AIM-listed Urals was requisitioned 10 days ago by shareholders Alpcot Capital Management and Fire East Corporation, who together hold just short of 31% in Urals, to organise an emergency general meeting (EGM) to replace certain members of the board. However, Urals said on Monday that it had received a non-binding offer for the company of 12.25p share, two thirds higher than the closing price on Friday, from an unnamed but "highly credible, with both the necessary means to effect the potential offer and previous Russian operational oil experience".The board added that the EGM, which was requested by Alpcot and Fire East (owned by Russian Maxim Barsky and Oleg Makhno), was to be held on January 27th 2014 in order to give the unnamed bidder enough time to complete due diligence on the company. It also said it believed Barsky and Makhno were "acting at the behest" of Dmitry Bosov, former high flier at TNK-BP and currently owner of Alltech Group and a major shareholder along with Barsky in AIM's Matra Petroleum.Urals, which stressed that it saved the AIM-listed company from near bankruptcy in 2009, urged investors to vote against the proposals of the EGM requisitioners, as they had "failed to give any information on their future plans", that they were "planning on using the company to acquire a high risk asset and dilute existing shareholders" and that generally "the resolutions proposed are not in the interests of shareholders".A proposal to remove director Ingeborg Srenger from the board would, for example, cause default on the debt restructuring agreement made with the Petraco Oil Company, which it said "would be extremely detrimental to the company and its shareholders".Shares in Urals Energy were up 20% to 9p at 15:00 on Monday. OH