JKX CEO Paul Davies Survives Revolt Led by Two Top Investors
The shareholders of JKX Oil & Gas re-elected Paul Davies on Wednesday as Chief Executive Officer by a 4 percent margin, fending off a bid to oust him led by the two top investors Eclairs and Glengary.
JKX, specialized in oil and gas markets in Ukraine, came to the fore on 23 May, when the two top investors published an open letter stating their intention to vote Paul Devies off the Board.
According to a recent note by the Board, Eclairs is owned by Ukrainian duo Igor Kolomoisky and Gennady Bogolyubov, while Glengary is controlled by Russian oligarch Alexander Zhukov.
“The Board of JKX believes that the Collaborating Parties’ desire to destabilise JKX at a key juncture in the progress of the Company is an opportunistic attempt to secure control of its assets and the benefits of action taken by the Board without paying any premium to other shareholders,” reads a note published by JKX on 29 May.
The company tried to suspend the rights of Eclairs and Glengary to vote, but a High Court ruling overturned the decision of the existing Board and allowed the two top investors to take part to the Annual Meeting. Eclairs and Glengary control 39 per cent of shares.
On Wednesday, over 52% of shareholders voted the re-election of Davies, while 9% backed the attempt of the two top investors to oust the CEO. Eclairs called on shareholders to remove Davies, citing an 88% plunge in JKX’s company over the past five years.
“Your Company faced significant challenges in 2012 with declining production in Ukraine, production delays in Russia, and reduced liquidity resulting from retirement of short-term debt. I am pleased to report that these difficulties were successfully overcome and that we have progressed into 2013 with rising Ukrainian production, full plant capacity in Russia and exciting development programmes in both Ukraine and Russia following the successful placing of $40 million of convertible bonds in January of this year,” Nigel Moore, Chairman of JKX, commented on Wednesday.
Paul Davies joined the Board on 30 January 1998. He has extensive experience of business in the former Soviet Union and was a founder of JP Kenny Exploration & Production Ltd, the forerunner of JKX Oil & Gas.