Tap Oil starts review of divestment options

March 6, 2015
Tap Oil Ltd., Perth, has begun a strategic review of its divestment options, which is being held in the shadow of a boardroom leadership challenge from Thai millionaire Chatchai Yenbamroong.

Tap Oil Ltd., Perth, has begun a strategic review of its divestment options, which is being held in the shadow of a boardroom leadership challenge from Thai millionaire Chatchai Yenbamroong.

The divestments could include its flagship Manora oil field development in the Gulf of Thailand along with the company’s noncore Australian portfolio.

Tap says the review, being conducted by Miro Advisors in conjunction with Corrs Chambers Westgarth, will also consider any potential “whole-of-company” proposals that may emerge if they provide compelling value for Tap shareholders.

This follows recent valuation outcomes achieved by shareholders in other ASX-listed companies with Australian and Asian oil production portfolios such as Fosun’s acquisition of Roc Oil and Bangchak’s purchase of Nido Petroleum.

At the same time Tap has blasted Yenbamroong’s move as an opportunistic attempt to take control of the company without making a formal offer and paying a control premium to all Tap shareholders.

Yenbamroong owns Manora project JV partner Northern Gulf Petroleum, which recently increased its holding in Tap from 6% to 19.98%.

Yenbamroong has proposed to oust three sitting tap directors and then appoint 80% of the Tap board despite having voting control of just 19.98% of the shares.

A meeting of shareholders over this matter is likely to be held in late April or early May.