Major JKX shareholder revolts against management

Eclairs Group, which holds a 27.5% stake in JKX Oil & Gas (JKX LN), called on the company’s investors to vote against the re-election of Paul Davies as CEO at the upcoming AGM on June 5. In its open letter to shareholders, Eclairs blamed Davies and Commercial Director Peter Dixon for poor management and the 88% decrease in the company’s share price over the past five years. Reportedly, Eclairs is backed by Glengary Overseas, which holds an 11.45% stake in JKX.

Eclairs attempted to remove the current management early this year, but it failed as its request for an EGM in March was rejected by the company’s management.

Roman Dmytrenko: The active position of one of JKX’ largest shareholders should have a positive impact on JKX’s share performance, in our view. If Eclairs succeeds in management reshuffle, we might see a rally on optimism. Should it fail, we might see a takeover bid from Eclairs at a premium to the current share price.