INITIAL RESPONSE TO THE ERM POWER LIMITED’s PROPOSAL TO CHANGE THE EMPIRE OIL & GAS NL BOARD
The Directors of Empire Oil & Gas NL (“Empire”) or (“the Company”) note the announcement from ERM Power Limited (“ERM”) made 27 September, 2013 in relation to requisitioning a meeting of shareholders seeking to remove the majority of the Empire Board and replace them with ERM’s own nominees.
Given that ERM is proposing to replace 75% of the Empire Board when it only owns a 9.51% interest in Empire, the Empire Board considers that this is an opportunistic attempt by ERM to take control of Empire without making a formal offer to all shareholders and without paying a premium to other existing shareholders for control of the Company. It should also be recognised that a consequence of ERM’s proposal is that ERM (by virtue of its majority control of the Empire Board) would assume operational control of the Red Gully Gas Processing Facility (“Facility”) and seven Perth Basin exploration joint ventures it has with Empire.
For further information please download PDF below:
