Founder in line for windfall from takeover deal

Deputy Business Editor

Friday 15 March 2013

VALIANT Petroleum founder Peter Buchanan is in line for a further six-figure windfall if a £203 million takeover by Ithaca Energy goes ahead.

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More than 200,000 shares he would be due under long-term incentive plans (LTIP) will vest if the deal completes.

At 307p per share he will net £610,859 from the early vesting of the LTIPs plus 264,639 Ithaca shares.

That would be on top of £9.6 million and 4.17 million Ithaca shares he would be due in exchange for his existing stake in Valiant. The recent shareholder circular outlining the deal shows Mr Buchanan – who led the Royal Bank of Scotland oil and gas team in Aberdeen prior to forming Valiant – will receive 14,787 shares under the 2010 LTIP, the full 97,089 award for 2011 plus 87,101 from his 2012 award if the Ithaca transaction is approved.Mr Buchanan was granted dispensation by the Valiant board in November last year to temporarily step down from chief executive duties to focus on a buyout of the business. So far he has refused to back the Ithaca takeover.Other executives at North Sea-focused Valiant are due large windfalls relating to early LTIP payouts.Chief financial officer Mark Lewis stands to gain in excess of £410,000 and more than 177,000 shares, while Sandy Shaw, corporate and commercial director, is likely to get £388,000 and almost 167,000 shares.Chief operating officer Paul Mann will get £344,000 and 149,000 shares.The shareholder circular document shows Valiant expects to have a bill of £3.5m of fees relating to the deal with corporate and broking advice making up the bulk at £2.4m followed by legal advice at £860,000.Ithaca said its bill will be just shy of £3.1m with the largest chunks the £1.5m on financial and corporate broking, £814,000 in relation to financing arrangements and £630,000 on legal fees.In a separate announcement Ithaca said shareholders JEC Capital Partners and JEC II Associates have withdrawn their opposition to the Valiant acquisition.Ithaca shares closed down 2p at 118.25 with Valiant down 1.5p at 460.5p.

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Founder in line for windfall from takeover deal

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