Yemisi Izuora
Mr. Michael Ajukwu and Mark Simmonds have stepped down as non-executive directors of Lekoil Ltd an oil and gas exploration and production in Nigeria.
Both resigned on Wednesday in what observers see as prompted by internal crises.
Ajukwu was made chair only in January, and following his exit, Anthony Hawkins will step up to interim chair until a permanent replacement is found, report by MorningStar indicates.
In resigning, Lekoil said that Ajukwu noted “a fundamental misalignment of objectives amongst the shareholders of Lekoil Nigeria” and said he believes new directors are required to address the issue.
Lekoil appointed two new non-executive directors. Marco D’Attanasio is chief investment officer at London-based investment management firm Hadron Capital and is on the board of London-listed cryptocurrency miner Argo Blockchain PLC. Al Tindall is senior counsel at Hardwick Law Firm LLC in the US.
Apparent crises hitting South African mining company, Metallon Corporation has derailed its attempt to takeover Lekoil Limited
At the moment two out of its three Board appointees have resigned in quick succession.
Mr. Michael Ajukwu who was appointed Chairman of the AIM listed Lekoil Limited in January 2021 by Metallon Corporation, as well as George Maxwell have both thrown in the towel.
Following a decline in the price of Lekoil Limited shares in 2020, Metallon which has unsuccessfully conducted mining business in Zimbabwe and South Africa mopped up 15 per cent of the company’s shares thereby becoming the majority stakeholder in a veiled bid to assume control of Lekoil Nigeria Limited (an affiliate company), its subsidiaries and assets.
However, the impracticability of Lekoil Limited or its Board affirming or taking control of Lekoil Nigeria or its subsidiaries has become more obvious.
According to its shareholders agreement, Lekoil Limited is a minority shareholder in Lekoil Nigeria and thus Lekoil Limited cannot generally compel Lekoil Nigeria to follow a particular course of action.
Based on the relevant Nigerian laws and extant agreements between Lekoil Nigeria and its respective shareholders, Lekoil Nigeria and its subsidiaries remain directly responsible (to the exclusion of any third parties) for their governance.
The risks implied should Lekoil Limited attempt to arm twist Lekoil Nigeria are clearly stated in the “Admission to AIM” document which is available in the Investor Relations section of the Company’s website.
Metallon was indeed advised of this before attempting an “empty” takeover attempt, a sentiment that likely led to the resignation of Mr. Ajukwu. All of Lekoil Nigeria’s assets and those of its subsidiaries remain under its control.
George Maxwell’s resignation gives the impression that he would not like to be bugged down by the complexities associated with trying to gain control of Lekoil Nigeria, a company that has been painstakingly built for the past 11 years. He accepted a new position at a company where he was already a Board member.
Only Tom Richardson, the third of the appointees, who also doubles as a Metallon employee is left as he remains stuck to his employer.
Founded in 2010, by professionals who have extensive experience in both global oil exploration and global financial markets, Lekoil has an ambition of becoming one of the world’s leading exploration and production companies focused on Africa.
In realising its vision, the company has continued to pursue the goal of maximizing value for its stakeholders in a sustainable manner, by operating with integrity and leveraging local resources – to the benefit of the countries and communities in which it operates.
