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Worldview Capital Management: Why Did Petroceltic Refuse Better Placing Terms?

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SOURCE Worldview Capital Management

LONDON, May 16, 2014 /PRNewswire/ --

Worldview Capital Management ("Worldview"), an investment management group based in Switzerland and the UK (FCA authorised), notes the RNS announcements made today by Petroceltic International plc (LON: PCI) ("Petroceltic" or the "Company") in respect of a proposed placing of new ordinary shares to raise approximately $100 million (£59.7 million) (the "Placing").

Worldview has been a shareholder in Petroceltic since 2011, currently holds more than 12% of the Company's share capital and has always believed in the long term value of the Company and has been supportive of Company management.

However, when Worldview was approached to participate in the Placing, it expressed to Company management its significant concerns regarding the Placing relating to corporate governance, the approach to pre-emption rights and the justification for allocating $50 million (half of the Placing) to a single new investor.       

In light of these concerns, and as an alternative to the Placing, Worldview yesterday made an offer to the Company to subscribe for up to $100 million of new ordinary shares at £1.62 per share (representing a 3.18% increase on the proposed Placing price of £1.57 per share), while being receptive to existing shareholders being given the opportunity to participate in line with their existing holdings, as well as certain new institutional investors. 

This offer, effectively to underwrite a $100 million placing of new ordinary shares in Petroceltic at a higher price than the current Placing and which would respect pre-emption rights, was rejected by the Company.  

Although Worldview has agreed to participate in the current Placing, this does not alleviate its concerns expressed to Company management, which Worldview does not believe have been sufficiently addressed in today's RNS announcements by Petroceltic.  

Worldview therefore expects the Company to fully address these concerns for the benefit of all shareholders and to explain to shareholders why Worldview's offer effectively to underwrite the Placing at a higher price was rejected.

Notes to Editors: 

Worldview Capital Management is an investment management group based in Switzerland and UK (FCA authorised), which controls votes of more than 12% of the share capital of Petroceltic International plc, company whose shares are listed on the AIM market of the London Stock Exchange (LON: PCI) and the Enterprise Securities Market of the Irish Stock Exchange.

Hudson Sandler: Charlie Jack

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