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. ERM P sufficien propose publicly Mr Iann Empire’ “We are unlock support About Tony Ia Mr Iann Iannello utility, u manage Energia membe Brett H Mr Hea speciali and ad corpora mergers Ltd and Peter Ja Group G ERM Po For furt Paul Ar Read C 0421 61 Power has b nt time to ed. The tw y-listed com nello said E ’s assets an e committe greater val t the resolut ERM Powe annello nello has m o was the M until it was ement posit a Minerals er of the Mu Heading ading has e ises in corp dvising boa ations. He s and acqu d Trinity Ltd. ans General Co ower Limite rther inform rmstrong Corporate 19 084/08 9 been patien unlock sha wo Director panies and ERM Power nd share pr d to utilisin ue for its sh tions to help er’s represe more than 3 Managing D broken into tions at Ban and a Dir rdoch Unive extensive e porate law in ards of list is the Cha uisitions and . ounsel & Co ed mation cont 9388 1474 nt with Emp areholder va rs proposed the energy r as a partn ice perform ng our skills hareholders p us achiev entatives 30 years’ ex Director of W o four sepa nkWest. He ector of th ersity Sena experience ncluding me ted and un airman of M d capital ra mpany Sec tact pire’s Board alue and a d by ERM y industry (s ner and ma m as strongly s, experienc s and partn ve this,.” he xperience in Western Po arate busine e is currently he Water C te. as a corpo ergers and a nlisted pub McCullough aisings. Mr cretary d but now b s such wo M Power h see below fo ajor shareho y as possibl ce and trac ners. I am a said. n the bank ower Corpor esses. He p y a Director Corporation orate lawye acquisitions blic compa Robertson Heading is believes it h uld benefit ave extens or more det older of Em le. ck record to asking Emp ing and ene ration, the l previously h r of ASX-lis of Wester er and com s, capital ra nies and g n Lawyers currently a has had mo from the c sive experi tails). mpire, wants o enable Em pire shareho ergy indust leading WA held severa sted SP Aus rn Australia mpany direc isings, ASX governmen and specia Director o ore than changes ence in s to see mpire to olders to tries. Mr A energy al senior snet and a and a ctor. He X listings t-owned alises in of Invion 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
EPW Price at posting:
$2.53 Sentiment: None Disclosure: Not Held
