OIL AND gas explorer 3Legs Resources yesterday urged shareholders to vote against an activist shareholder’s proposals at an upcoming extraordinary meeting.
Junior stock market-listed 3Legs, which has assets in Poland and Germany, last month said that Damille Investments – which holds a 14.15 per cent stake in 3Legs – was calling for the removal of four of the six existing directors, and a new investment approach.
Damille wants to appoint two of its directors in their place, 3Legs said, as well as a strategy that would restrict the company investing in any new assets.
3Legs yesterday called on its investors to vote against the plan, as it does not believe Guernsey-based investment company Damille is concerned with its drilling programme in the Baltic Basin. The Aim company said that maximising the potential and value of its Polish drilling programme – working alongside ConocoPhillips – was the main focus for the group, alongside minimising costs.
It added yesterday that when its planned drilling programme is complete – estimated to cost around £11m – 3Legs will review its Polish operations.
“Damille and its supporters are seeking to change the strategic direction of the company without paying any control premium to do so,” 3Legs said.