Since the last update (24.5.17) there have been some significant developments. Attached for your reference are the following documents;
1. Supplementary Scheme Booklet
2. AFR article 1.6.17
Dealing with each development;
Postponement of the Scheme Meeting
CTP have notified shareholders they received court approval to postpone the Scheme Meeting three (3) weeks to Monday 19 June 2017.
The Company has issued a Supplementary Scheme Booklet (copy attached) purporting to provide information on changes (since the original Booklet was issued) which they believe will materially impact the Company if the Scheme is not accepted by shareholders.
Upon review the CPSA does not consider the information provided as new, as it was largely contained in the original Scheme Booklet and recent ASX announcements. We therefore question the true motives behind the postponement of the Scheme Meeting. It could very well be that the voting to date is in line with our survey responses, which suggests the Scheme will likely fail.
Every shareholder needs to make their own decision. If you have not voted yet you should do so. As some members have done already, if you require our assistance please let us know.
My personal view remains unchanged and I will be staying with voting AGAINST the Scheme.
AFR article 1.6.17 "Board goes, I go" says Central's Cottee
Members may have some concerns about this article. We understand Richard Cottee is under pressure and highly emotional at present, however we would like to make a couple of observations;
- We're not sure ALL management would be in favour of the Scheme as some will ultimately lose their jobs if the Scheme goes ahead.
- Our understanding is that the political and economic circumstances of Central are totally different to Nexus which eventually collapsed into insolvency. Even the CTP Chairman (an ex PWC Audit partner) has said Central is in the black for at least 18 months with the new GSA just signed. The auditors signed off the last annual report with no qualification. We do understand Richard Cottee had a Julius Caesar experience at Nexus and that would be more what he is referring to however, we do not believe that is the case with OptionCo's proposal. On the contrary, OptionCo have stated their preference is for ALL management to stay. If Richard Cottee leaves it will be his choice.
- The Scheme contract signed by the CTP board included a "no talk" clause which basically gagged all board members and obliged them to do nothing more than promote the Scheme. To allow outsiders to contact him (without informing Macquarie) is, as we understand it, not possible.
- Considering all the positive things he has done for the company since taking over in 2012, we agree the personal attacks on Richard Cottee on investor blog sites like Hot Copper and Top Stocks are largely unfair and totally uncalled for. Whilst understanding the frustration amongst shareholders we do not condone abusive posts on public forums. We do however acknowledge it is a small minority of faceless people that are to blame.
OptionCo Responds
Stuart Howes has contacted the CPSA on behalf of OptionCo and has advised the following points (copied verbatim below);
He says, OptionCo;
·is appreciative of Mr Cottee’s contribution to CTP and still believes that his continued involvement with the Company would be beneficial. However if Mr Cottee would prefer not to stay this decision remains his to make, and OptionCo has never relied upon his tenure alone for the potential of the Company to be realized.
·is concerned the postponement of the Scheme Meeting and the language used in the Supplementary Scheme Booklet is more about causing anxiety to Shareholders than it is about encouraging the democratic process of Shareholders voting as they choose.
·remains concerned about the influence Macquarie appears to have over our present board’s decisions with regards promoting Macquarie’s interests, rather than adequately outlining a plan for the company if Shareholders choose to reject the Scheme.
·remains committed to the strategy as outlined in our Information Pack, and looks forward to CTP announcing the timing of the requested EGM in the coming week.
·intends to formally respond to the Chairman’s letter in the coming days.
CPSA Member SoA Survey#3
In line with the CPSA’s commitment to providing a voice to all members, our 3rd SoA survey will be released in the coming days to gauge your feelings on some of the recent developments. Your participation in the survey will be appreciated and helpful in our representation of the majority of members.
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.
As always the CPSA remains committed to assisting members, and maintains the belief the future of Central Petroleum is in the hands of all of its shareholders.
Regards
Regards
RobinJudd
CTP Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held
