Urals Energy Public Company Limited Termination of offer talks and shareholder update (0236W)
20 December 2013 - 2:30AM
UK Regulatory
TIDMUEN
RNS Number : 0236W
Urals Energy Public Company Limited
19 December 2013
Press Release 19 December 2013
Urals Energy PCL
("Urals Energy" or the "Company")
Termination of offer talks and shareholder update
On 14 October 2013, Urals Energy (AIM:UEN), the independent
exploration and production company with operations in Russia,
announced that it had received a non-binding letter of intent from
a third party, whom the Board and the Company's advisers considered
to be highly credible, setting out the third party's intention
(subject, inter alia, to due diligence) to make an offer for the
entire issued share capital of the Company. This potential offer
was at an indicative price of 12.25 pence per share.
The Company has today received a letter from the third party
stating that they have decided not to proceed further with their
interest in a possible acquisition of the Company.
The Company has held discussions with Adler Impex S.A.
("Adler"), who have recently announced that they are the beneficial
owner of 25.08% of the issued share capital of the Company. Adler
represents the interests of Mr. Shvets, a Russian banker and
industrialist with investments in, amongst others, the Oil Sector.
Adler have told the Company that their investment in the Company is
purely financial and that they fully support the existing
management team in the continuation of the Company's declared
strategy of raising production as far as commercially feasible.
Adler are also supportive of the Company, with its debt free
balance sheet, pursuing exploration licenses and pre-production
acquisition opportunities.
Adler has confirmed that it will support the existing Board in
the upcoming EGM and urges the other shareholders to do the
same.
Andrew Shrager, Chairman of Urals Energy, said: "Whilst we are
disappointed that the potential offer has not been made to all
Urals Energy's shareholders the Board believe that the true value
of the Company is significantly higher than the indicated offer
price per share.
"Unfortunately the recent attempts by certain parties to
destabilise the Company through the alleged debt repayment document
and recent police visit to the Company's Moscow office has created
a considerable amount of uncertainty for shareholders and the third
party who were considering making an offer for the Company.
"The Board continues to believe that the interests of
shareholders are best served by voting against the resolutions to
be proposed at the extraordinary general meeting convened for 27
January 2014. The Board, who are delighted with the support of the
Company's 25% shareholder, will be writing to shareholders early in
the New Year to set out again the reasons why shareholders should
vote against the resolutions."
- Ends -
For further information, please contact:
Urals Energy Public Company Limited
Alexei Maximov, Chief Executive Tel: +7 495 795 0300
Officer
Sergey Uzornikov, Chief Financial www.uralsenergy.com
Officer
Allenby Capital Limited
Nominated Adviser and Broker
Nick Naylor Tel: +44 (0) 20 3328
5656
www.allenbycapital.com
Media enquiries:
Abchurch
Henry Harrison-Topham Tel: +44 (0) 20 7398
7702
henry.ht@abchurch-group.com www.abchurch-group.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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