GasFrac Energy Services announced today it reached a deal with 5.4% owner, Nanes Balkany Partners, to replace its entire board of directors with a slate put forward from the New-York based activist investment fund.
According to a Calgary Herald article, the move has garnered praise from environmentalists, but no love from shareholders.
Read the press release courtesy GasFrac below:
CALGARY, ALBERTA–(Marketwired – April 29, 2014) – GASFRAC Energy Services Inc. (“GASFRAC” or the “Company”) (TSX:GFS) and Nanes Balkany Partners I LP (“Nanes Balkany”), the beneficial owner of approximately 5.4% of GASFRAC’s common shares, today announced that they have entered into a settlement agreement (the “Agreement”) under which it was agreed to nominate six new individuals to be elected to GASFRAC’s Board of Directors, including two nominees put forward by Nanes Balkany, one of the Company’s largest shareholders. GASFRAC’s seven incumbent directors will not seek re-election and will step down at the annual meeting of shareholders scheduled to be held on May 27, 2014.
Under the terms of the Agreement, GASFRAC’s slate of nominees to the Board includes: Julien Balkany and Pierre Jungels (Nanes Balkany’s nominees) and Dale Tremblay, James Hill, Larry Lindholm, and Mark Williamson. Mr. Hill, CEO of the Company will be promoted to the Board to assure continuity.