It is now less than two weeks before the Scheme meeting is due to be held with shareholders deciding its fate. The CPSA will be in attendance.
Scheme Voting
This is the first important item of business. An overwhelming majority of CPSA members (>90%) have said they are against the Scheme being in their best interests. I agree and have voted AGAINST the Scheme.
It is up to each shareholder to vote the way they want. You have a choice of signing and mailing in a form or voting online (much easier). We encourage all CPSA members to direct vote online.
The link to online vote is here: https://www.investorvote.com.au/Login
Control Number is 109368
You will need your SRN/HIN and postcode of the address your holdings are registered in.
If a member requires help from the CPSA we are happy to act as your proxy. If you do and leave your vote "open" we will be voting AGAINST the Scheme. If you want us to lodge your vote for you please provide SRN/HIN, postcode and name of registered holder.
CTP Information Sessions
The company has held Information Sessions in Brisbane, Perth, Sydney & Melbourne with some CPSA members having attended. The sessions were arranged independently of the CPSA and we understand there was some robust discussions with shareholders. We appreciate the company making the effort.
The CPSA attended the Melbourne (final) Information Session on 22 May 2017. Representing CTP were Richard Cottee, Rob Hubbard and Joseph Morfea, with about 12-14 shareholders present. Our observation was that the board is now starting to prepare for the probability of the Scheme failing, and if that occurs would probably like shareholders to allow them to continue in their present roles until at least the next AGM.
Current Board
Members are questioning the current board's future actions if the Scheme is voted down. The board argues they supported the Scheme of Arrangement to allow shareholders to have a say. We question the boards judgment in entering into such an onerous Scheme without at least attempting to gauge shareholder sentiment. The board cites (refer to the Scheme Booklet) the inability to raise capital, failure of the last SPP and lack of a superior bid as some of the reasons to consider approving the Scheme. Our SoA Survey#1 indicates many shareholders would, under the right circumstances, favourably consider a rights issue. The strong resistance to the Scheme suggests the current board appears out of touch with the majority of shareholders.
CPSA Member SoA Survey#2 OptionCo
Survey#2 indicates a majority of members endorse the OptionCo approach and a change of board members. I personally agree with that endorsement.
If you have not participated in the survey as yet I would encourage all members to do so.
Not financial advice
Comments made and information provided in this email should not be construed as investment advice and members are encouraged to seek their own professional advice in relation to their investment in CTP.
The CPSA remains committed to assisting members, and respects that fact that the future of Central Petroleum is in the hands of all of its shareholders.
Regards
Robin Judd
Central Petroleum Shareholders Association
CTP Price at posting:
18.5¢ Sentiment: Hold Disclosure: Held
