NEW YORK, July 22, 2014 /PRNewswire/ --Lone Star Value Investors, LP ("Lone Star Value"), owner of more than 18 million shares representing 7.1% of Antares Energy Limited ("Antares") (ASX: AZZ) (AZZEF), today issued the following statement in response to the apparent vote to retain the current directors on the Board of Directors of Antares at 22 July General Meeting of shareholders.
Jeff Eberwein of Lone Star Value said, "In order to defeat Lone Star Value's campaign for change and retain their positions on the Board, CEO Cruickshank and his fellow directors have made important public promises to the shareholders of Antares.Antares claims it has multiple offers, both for all its assets and all its stock.We call on Antares to immediately reveal more details about these offers and, assuming they are legitimate, immediately run an auction process to sell to the highest bidder. If the highest bid is for the assets of the Company rather than its stock, we call on Antares to return ALL the cash from asset sales to Antares shareholders.If Antares' incumbent Board refuses to do so, then the Board, at a minimum, should put the matter to a shareholder vote and allow shareholders, not management, to decide if all the cash should be distributed to shareholders or retained by management.We also believe shareholders should be allowed to vote to approve any management bonuses received as a result of selling the assets or stock of the Company."
"Antares' Board and management have a long track record of missing targets and breaking promises.We, and all non-conflicted Antares shareholders, will hold them accountable going forward.Notably, even with their vague details of offers from bidders and vows to pursue value-maximising asset sales and a number of defensive maneuvers and two trading halts, we estimate shareholders came ONE shareholder vote away from electing Lone Star Value's nominees and removing the two employee directors.This ONE shareholder appears to be Schroders PLC ("Schroders") (LSE: SDR) who claims to be a thought leader in Corporate Governance and says it holds its portfolio companies to the highest standards.It is extremely perplexing that Schroders would vote against its own Corporate Governance standards and against the recommendations of both leading proxy advisory firms, ISS and CGI-Glass Lewis, in supporting an employee-dominated Board, the very epitome of conflict of interest and poor governance.The fact remains that hundreds of Antares shareholders showed their frustration with the lack of independence and accountability of the Board, its ineffectiveness at delivering results for shareholders, and an overall mentality that places management's interests above shareholders'.The level of support for Lone Star Value's nominees and our evaluation that the vote was ONE shareholder away from major change to Antares' Board should serve as a wake-up call to the incumbents - the clock is ticking for delivering immediate value to Antares' shareholders."
"Antares' Board must provide an immediate market update on the true status of the takeover offer and asset sales they have announced; and we, like our fellow shareholders, will closely monitor both the Board's disclosures and their actions as they navigate through any sales process. We assume ASIC will also closely examine past and current Board actions given the questionable trading activities of some Board members including the CEO.Lone Star Value remains a committed shareholder of Antares and we will not hesitate to take any actions necessary to ensure that the best interests of all shareholders are properly served."
"We want to thank our fellow shareholders for their support and contribution to this long overdue and healthy debate about the future of our Company and we encourage them to keep up the pressure on Antares' Board and management to improve transparency and accountability."
Media enquiries please contact:
John Hurst - Cannings Corporate Communications
+61 418 708 663
Lone Star Value Management
+1-203-489-9500
SOURCE Lone Star Value Investors, LP
