RiverFort Global Opportunities PLC Update re Plutus PowerGen plc requisition
19 Diciembre 2019 - 5:45AM
RNS Non-Regulatory
TIDMRGO
RiverFort Global Opportunities PLC
19 December 2019
19 December 2019
Update with respect to the Plutus PowerGen plc requisition
A response from the requisitioning shareholders,
Chelverton Asset Management and RiverFort Global Opportunities
plc
To shareholders of Plutus PowerGen plc
Dear Shareholders
You will have seen our letter to you that was circulated along
with the notice of General Meeting by Plutus PowerGen plc (the
"Company" or "PPG") on Friday 13 December 2019. Our letter clearly
sets out why we believe that the Company needs a new board of
directors if it is to stand any chance of survival. Unfortunately,
we were limited to writing 1,000 words in that letter to set out
our case and proposals. We are therefore taking this opportunity to
give a more detailed response to the views expressed by the
incumbent directors of PPG in the recently published circular and
to update shareholders on recent developments.
As we said in our original letter, we have been seeking to work
with PPG's board since May of this year, but have made little
progress and, given the number of additional worrying events that
have taken place since, we have been left with no alternative but
to seek to replace the current board in order to save the
Company.
We are now writing to clarify certain matters raised in our
letter and/or points raised in the Company's circular, and more
generally.
Experience of the new team and strategy
The proposed Alternative Directors have significant experience
of AIM listed companies and, in particular, of companies that have
been in difficult situations, and we have a record of being able to
successfully resolve those situations. Furthermore, the Alternative
Directors have access to both proprietary capital and funds from
other investors - something that the Company will need now or, most
likely, very shortly.
If we were appointed, our initial strategy would be to stabilise
the Company by reducing and controlling costs and to make sure that
the Company has the necessary funds to enable it to continue to
trade. We would also seek to rebuild relationships with the
Rockpool-owned power companies. Once the Company has been
stabilised, we would look to take action to maximise the potential
investment return for all shareholders - we firmly believe that
there are a number of opportunities that the Company could pursue
that would create value for shareholders which we have already
started to progress.
The sale of the existing power sites has been mentioned but we
believe that this is highly unlikely to happen quickly enough.
Also, any price offered at this stage is unlikely to be attractive
due to current market conditions and the sense that the Company is
a "forced" seller. It would also require the agreement of
Rockpool.
In terms of obtaining funding for the construction for new gas
sites, to date, it would appear that very little, if any, progress
has been made so we do not believe that our actions could have made
matters worse than they already are. We believe that with a
completely new management team in place the prospects for obtaining
the necessary financing will markedly improve as, between us, we
have a very considerable network and extensive experience of
arranging funding.
Rockpool
As we have mentioned previously, if the current board is
changed, we believe that there is a very good chance that we would
be able to rebuild the relationship with the Rockpool-owned power
companies. This would be very helpful regarding both the building
of the Company's first gas site and the possibility of reinstating
the management contracts.
PPG has stated in its circular that it does not believe that the
management contracts can be reinstated - we would readily agree
with them if the existing board were to remain in place.
However, we have recently been in contact with the
Rockpool-owned power companies and they have confirmed to us that
in the event that the current directors of PPG are removed and
replaced with a board acceptable to them, they would be open to
discussing the potential reappointment of PPG to manage these
companies - this is a very significant development.
The reinstatement of these contracts would be a material event
for the Company and greatly improve its financial position. It is
difficult to form a view of the Company's short term funding
requirements without a better understanding of its actual financial
position, although we believe that it is extremely weak.
Listing on AIM
Provided that the Company has the necessary funding in place, we
do not believe that there is a risk that the Company will be
suspended or delisted as a result of shareholders voting for the
resolutions proposed.
In summary, we strongly believe that the only way for the
Company to survive and thrive going forward is for shareholders to
vote for the resolutions at the forthcoming general meeting of the
Company on 10 January 2020 in order to remove the Existing
Directors and appoint the Alternative Directors.
We accordingly urge you to support the proposals that we have
set out in the requisition. We can only achieve our objectives to
turn around this situation with your active support. The Company
has been compelled by law to convene a general meeting at which our
proposals to remove the existing Board and appoint the Alternative
Directors will be put to you as shareholders.
However, these proposals can only be implemented with your
active support and if you consider our proposals to be a sensible
and an effective way to achieve change for the better please vote
to support them. We appreciate that this means you will need to
vote your shares and this may mean contacting your broker or fund
manager (in whose custody the shares may be held). We urge you to
take the time to do this as there is unlikely to be another
opportunity to rescue this unhappy situation. If you need further
information on how to vote your shares please contact the broker or
platform through which you bought them and ask to speak to a
contact in their "corporate actions team".
Yours sincerely
David Horner Nigel Burton Nicholas Lee
Managing Director Investment Director
Chelverton Asset Management RiverFort Global Opportunities
plc
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END
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