UPDATE: BowLeven And Crown Ocean Continue War Of Words

LONDON (Alliance News) - The war of words between Africa-focused oil ...

Alliance News 17 February, 2017 | 9:09PM
Email Form

LONDON (Alliance News) - The war of words between Africa-focused oil and gas explorer BowLeven PLC and activist shareholder Crown Ocean Capital P1 Ltd continued apace on Friday, as BowLeven issued a comprehensive rebuttal to claims made by Crown Ocean earlier this week.

Crown Ocean requisitioned a meeting of BowLeven in January in a bid to oust six of the company's current directors, proposing two replacements of its own. The firm owns a stake of around 16.2% in BowLeven.

It has also called on BowLeven to concentrate is resources on its Etinde oil and gas project in Cameroon and to stop allocating investment to the Bomono project in the same country.

BowLeven has consistently opposed the proposals from Crown Ocean but on Wednesday confirmed the meeting to vote on the proposals will take place on March 14 in Edinburgh.

The two heavily criticised each other on Wednesday, with BowLeven claiming Crown Ocean's proposals were "self-serving" and would ultimately harm both the prospects of the company and the interests of its other shareholders.

Crown Ocean hit back, saying BowLeven had "failed to own up" to the issues Crown Ocean has raised and claiming there is a vast misalignment in the interests of BowLeven's board and its shareholders.

On Friday, BowLeven refuted all the claims made by Crown Ocean on Wednesday, including on the remuneration of its directors, the independence of its board, its share buyback authority and on claims made by Crown Ocean regarding a possible management buy out of the business in 2016.

It also noted that Crown Ocean's board proposals would result in David Clarkson being the only existing member remaining on the board, yet he has reiterated his opposition to Crown Ocean's plans.

BowLeven addressed accusations made by Crown Ocean around the Bomono permit, a perceived lack of transparency on farm-out talks for the asset and on further issues raised about its long-term performance incentive scheme.

BowLeven again reiterated its opposition to the Crown Ocean plans and said shareholders should vote against the proposals.

Crown Ocean, later on Friday, then responded by saying it does not feel a need to add to the criticisms it has already levelled at BowLeven and it fully stands behind its position.

Shares in BowLeven were down 2.9% at 33.50 pence on Friday morning.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

Copyright 2017 Alliance News Limited. All Rights Reserved.

Email Form
Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Bowleven PLC 29.90 GBX 4.00 -
About Author Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.