3Legs tells investors to reject proposals in board overhaul

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.