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Antares takes legal action against shareholder over ‘false’ information

Antares takes legal action against shareholder over ‘false’ information

Photo by Bloomberg

3rd July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Oil and gas explorer Antares Energy has launched legal action against shareholder Lone Star Value Investors, saying the company was spreading false and misleading information.

In May, Lone Star, which owns a 6% shareholding in the ASX-listed Antares, notified the company that it was seeking to remove two of the company’s existing directors, and to appoint five new directors of its choosing.

Antares said on Thursday that Lone Star had made a number of false and misleading statements in its communications to Antares shareholders, prompting the oil and gas explorer to launch a defamation case against the company’s representatives.

“While this is an unfortunate distraction from our core business of delivering value from our Permian asset base, we believe it is important that Antares shareholders receive factual information on which to base their decisions,” said Antares chairperson and CEO James Cruickshank.

He noted that the vote at the upcoming general meeting was critical for Antares shareholders.

“Lone Star is seeking to get effective control of Antares by installing five of its nominees onto the Antares board and removing two existing directors. This could deliver effective control of Antares to Lone Star without Antares shareholders receiving an offer for their shares, or a premium for control,” Cruickshank said.

He added that if Lone Star wanted control of the company, it should make a cash on-market bid.

Lone Star was hoping to remove current directors Vicky McAppion and Greg Shoemaker, claiming that it would work to improve the company’s operations and “help” its share price.

A general meeting would be held on July 22, giving Antares shareholders a chance to vote on the recent developments.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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