Milroy Capital, which has requisitioned a general meeting to remove three existing directors of Wessex Exploration, believes that the company faces a bleak future and shareholders will be hit by further dilution.
Milroy argues that the Wessex board lacks leadership and is too passive. It also says that they do not have a significant stake in the business.
Milroy owns 4.7% of Wessex and it says that former managing director and founder Frederik Dekker will not be returning to the board although he will support the proposals with his 11.3% stake. .
The proposed new directors are Robert Milroy, Robert McAndrew, Alastair Murray and Ian Burns. They have experience of the oil and gas sector. The roles of chairman and chief executive will be split. The new strategy will be to develop small and medium sized producing assets and exploration will be focused on existing oil producing areas.
The general meeting will be held on 15 May. Wessex says it is in talks to acquire Far East oil and gas interests but this will not go ahead if the resolutions are successful. Milroy asked for more details of the deal but this request was refused. The deal could be highly dilutive for existing shareholders.
At 0.55p a share, Wessex is valued at £4m. At the end of March 2014, there was £2.15m in the bank.
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