Urals Energy sets out case against takeover proposals

2nd Jan 2014 08:14

The board of Urals Energy has dismissed the takeover aspirations of one of its major shareholders in a passionate letter to shareholders citing dirty tactics and a lack of strategy.Major shareholders Alpcot Capital and Fire East Corporation, which the board believe is connected to Russian businessman Dmitry Bosov, has requisitioned an emergency general meeting that will be held on January 27th in Urals' Cypriot registered headquarters. However, Alpcot has since sold its stake to another Russian group, Adler Impex, which has come in support of the current Urals management team. The letter to shareholders confirmed an alleged $41m debt repayment to a former director was a forgery that emerged with "no coincidence" at a crucial time in negotiations and had led to an alternative takeover bid, rival to that of Fire East, having now been withdrawn. Moreover, Fire East "does not possess a strategy for the company" and "has little knowledge of the company and its operations" the letter asserted.It said shareholders voting in favour of the resolutions put forward by Fire East at the EGM would "undermine all of the current management team's efforts of the last several years to cleanse the company of its legacy issues" and risk its current stability and future progress. OH