Nothing like a shareholder revolt to get the story of a company out and attract buyers attention. Move to spill Molopo board as share price plunges Barry FitzGerald December 23, 2010 THE share price retreat of the oil and gas group Molopo Energy has prompted a bunch of wealthy businessmen on its share register to petition for a boardroom shake-up. Led by a property developer, Max Beck, the unhappy shareholders - holding 6.75 per cent of the company and including the pokies king Bruce Mathieson - have requisitioned a meeting at which they will seek the removal of the Molopo chairman, Don Beard, and a non-executive director, David Hobday, and their replacement by Mr Beck and Gregory Lewin. Mr Beck said the push for board changes was not taken lightly. There was a ''strong desire for change and shareholders should be given the chance to decide for themselves''. Molopo holds a board meeting today at which the requisition notice will be considered. Mr Beard did note yesterday that while the board's composition was ultimately a matter for shareholders, the board's duty was to act in the best interests of all shareholders. Molopo is expected to put up a spirited defence against the board challenge, notwithstanding the decline in the group's share price from a $1.42 a share high in January to a low of 88? on December 10. It closed yesterday at $1.025, up 2?. Molopo holds mainly unconventional oil and gas interests (coal seam gas, shale gas and ''tight'' oil) in Australia, Canada, the US and South Africa. It will argue that even at the lower levels, its shares have increased more than five-fold in the past four years and that it is positioning itself for a market re-rating of its shares by listing on the Toronto stock exchange next year through a smallish float of its Canadian subsidiary. The Canadian market is expected to place a higher value than the Australian market does on the group's 12.5 million barrels of Canadian oil reserves. The group will argue its Canadian push is in its infancy, with the key interests there only acquired last year and funded by the sale of NSW coal seam gas interests for $125 million, on which only $18 million had been spent. http://www.smh.com.au/business/move-to-spi...1222-195mn.html
MPO Price at posting:
$1.03 Sentiment: Hold Disclosure: Held
