NOMINEES of managed fund Kentgrove Capital rolled the board of New Guinea Energy (NGE) at an Extraordinary General Meeting requisitioned by the group.
The decision sees recently appointed chairman Michael Arnett and director Andrew Martin removed from their roles and replaced with former NGE chief executive Grant Worner and Kentgrove directors David Lamm and Adam Saunders.
Shareholders voted for all the proposals put to them by Kentgrove, with between 67 per cent and 68% of votes cast in favour.
The move came after shareholders rejected the company’s remuneration report at its annual general meeting in May, leading Mr Arnett to withdraw proposed votes on a share consolidation and a 10% placement facility.
In its member statement for the requisitioned meeting, Kentgrove said it was concerned “by several aspects” of the company’s strategy as proposed by Mr Arnett.
“The intention of the company to expand into new geographies, be it via oil and gas exploration or the acquisition of further drilling rigs, is worrisome,” the statement said.
“Kentgrove believes a company of NGE’s size must have very tight cost controls and that further overhead reductions are required in order to preserve shareholder value.”
Kentgrove said it would conduct a strategic review of the business three months after the meeting, while looking for a new chairperson.
“This review will focus on each of the company’s assets, the company’s future strategic direction, assess the overhead structure and also consider various capital management options, including the potential for share buy-backs or capital returns to all shareholders,” the group said.
This process has already begun, with NGE announcing an on-market share buy-back of up to 10% of the company’s issued capital – about 85 million shares – starting on 3 August and set to last for 12 months.