Eurasia Drilling minority shareholder UCP opposes buyout, unsatisfied with price
United Capital Partners (UCP), a private investment group is opposing the announced share buyout of the listed Russian oil services firm Eurasia Drilling Company Limited (EDC), and intends to refuse to participate in the offer, reported Vedomosti.
The Russian daily cited a statement by UPC, the owner of an 1.85% stake in EDC. UPC is unsatisfied with the price offered, the item reported.
In October 2015, EDC put an item for an agenda of an extraordinary meeting on the buyout of the company shares by the majority shareholders and top managers from the minority shareholders, at USD 11.75 per share. Subsequently, the shareholders seek to delist Eurasia Drilling’s GDRs from the London Stock Exchange. The EGM will take place on 13 November, the article reported.
The paper noted, citing the UCP statement, that the offered price is understated, given the fact that at the beginning of the year Schlumberger wanted to acquire EDC offering USD 22 per share.
The paper reported that previously, the buyout price was also questioned by investment fund East Capital.
Vedomosti