erm power moves to strengthen empire

27 September 2013
ERM Power moves to strengthen Empire
? ERM Power requisitions meeting of Empire shareholders to approve Board
changes
? Changes are aimed at improving performance and realising shareholder value
? New Board will immediately review Empire’s business and appoint an
Independent Chairman, Independent Non-Executive Director and an
experienced CEO
ERM Power Limited (ASX: EPW) today announced it had requisitioned Empire Oil & Gas NL
(ASX: EGO) to call a meeting of shareholders to consider resolutions aimed at removing
three of four members of the Empire Board and appointing two new Directors.
If the resolutions are approved, Craig Marshall, Neil Joyce and Jeffrey MacDonald will be
removed as Directors and two ERM Power representatives, Non-Executive Directors Tony
Iannello and Brett Heading will be appointed. There is no proposal to remove Dr Bevan
Warris as a Director.
Under the proposal, the new Board is expected to be in place for three to six months.
During this time, the Board will appoint a Chief Executive and two Independent Directors,
one of whom will take over as Chairman. Mr Iannello will remain as a Non-executive Director
and Mr Heading will resign. The new Board will also initiate a whole of business review to
consider Empire’s business, operational and governance structure to optimise performance
and shareholder returns.
This will leave Empire with a four-member Board, two of whom including the Chairman, will
be Independent. Mr Iannello will be the sole ERM Power representative.
ERM Power has been a joint venture partner with Empire for six years in seven exploration
tenements in Western Australia including EP 389 where it has a 23.61% minority interest in
the Red Gully project. ERM Power is also a ~10% shareholder in Empire.
ERM Power believes Red Gully and other Empire assets have significant underlying value
which Empire’s Board has failed to realise for its shareholders and joint venture partners.
This is reflected in Empire’s share price, which has fallen by more than 60% from ~4 cents to
~1.5 cents since the Red Gully discovery in March 2011.
ERM Power has no intention to make a takeover bid for Empire. Instead, its actions are
aimed at enabling it to work with Empire shareholders to realise what it believes is the true
underlying value of the joint venture’s assets and ensure that this value is fully reflected in
Empire’s share price.
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About ERM Power
ERM Power is a dynamic Australian energy company with interests in electricity sales and
generation, and gas production and exploration. Trading as ERM Business Energy and
founded in 1980, we have grown to become the 4th largest electricity retailer in the National
Electricity Market with operations in every state. We initially focused on larger businesses
but now offer our industry leading services to small businesses. We have equity interests in
442 megawatts of low emission, gas fired peaking power stations in Western Australia and
Queensland, sell conventional gas and condensate from onshore discoveries in Western
Australia, and have gas exploration operations in Western Australia and New South Wales.
www.ermpower.com.au