JKX move to persuade investors to back chief over tycoon plans

Michael Bow
Follow Michael
BOSSES at London listed JKX Oil and Gas will try to fend off a bid to oust chief executive Paul Davies this week by urging investors to reject a shareholder motion to ditch the boss.

Investor group JKX Action Group, led by the Eclairs Group, which is the top shareholder in JKX with 27.55 per cent and is owned by one of Ukraine’s richest businessman Igor Kolomoisky, has written to shareholders asking them to back proposals to remove Davies.

“We have serious concerns over JKX’s operational and financial performance, which has been in consistent decline over a number of years,” the letter says.

Kolomoisky is backed by Glengary Overseas, an investment vehicle for Russian businessman Alexander Zhukov, which owns 11.45 per cent.

A JKX spokesman told City A.M. the company would be writing to shareholders this week in response.

The spokesman said the letter would likely say that the group was acting in its own interests and not in the interests of shareholders and the move was an attempt to undermine the company.

The decision, to be made at a crunch shareholder meeting next Wednesday, 5 June, will turn on the rest of the shareholder body, comprised of institutional shareholders.

JKX, which is focused on Eastern Europe, first floated in London in 1995 under the stewardship of former BP chairman and chief executive Sir Robert Horton.