Lone Star Value Responds To General Meeting Results

             Lone Star Value Responds To General Meeting Results

PR Newswire

NEW YORK, July 22, 2014

NEW YORK, July 22, 2014 /PRNewswire/ --Lone Star Value Investors, LP ("Lone
Star Value"), owner of more than 18 million shares representing 7.1% of
Antares Energy Limited ("Antares") (ASX: AZZ) (AZZEF), today issued the
following statement in response to the apparent vote to retain the current
directors on the Board of Directors of Antares at 22 July General Meeting of
shareholders.

Jeff Eberwein of Lone Star Value said, "In order to defeat Lone Star Value's
campaign for change and retain their positions on the Board, CEO Cruickshank
and his fellow directors have made important public promises to the
shareholders of Antares.Antares claims it has multiple offers, both for all
its assets and all its stock.We call on Antares to immediately reveal more
details about these offers and, assuming they are legitimate, immediately run
an auction process to sell to the highest bidder. If the highest bid is for
the assets of the Company rather than its stock, we call on Antares to return
ALL the cash from asset sales to Antares shareholders.If Antares' incumbent
Board refuses to do so, then the Board, at a minimum, should put the matter to
a shareholder vote and allow shareholders, not management, to decide if all
the cash should be distributed to shareholders or retained by management.We
also believe shareholders should be allowed to vote to approve any management
bonuses received as a result of selling the assets or stock of the Company."

"Antares' Board and management have a long track record of missing targets and
breaking promises.We, and all non-conflicted Antares shareholders, will hold
them accountable going forward.Notably, even with their vague details of
offers from bidders and vows to pursue value-maximising asset sales and a
number of defensive maneuvers and two trading halts, we estimate shareholders
came ONE shareholder vote away from electing Lone Star Value's nominees and
removing the two employee directors.This ONE shareholder appears to be
Schroders PLC ("Schroders") (LSE: SDR) who claims to be a thought leader in
Corporate Governance and says it holds its portfolio companies to the highest
standards.It is extremely perplexing that Schroders would vote against its
own Corporate Governance standards and against the recommendations of both
leading proxy advisory firms, ISS and CGI-Glass Lewis, in supporting an
employee-dominated Board, the very epitome of conflict of interest and poor
governance.The fact remains that hundreds of Antares shareholders showed
their frustration with the lack of independence and accountability of the
Board, its ineffectiveness at delivering results for shareholders, and an
overall mentality that places management's interests above shareholders'.The
level of support for Lone Star Value's nominees and our evaluation that the
vote was ONE shareholder away from major change to Antares' Board should serve
as a wake-up call to the incumbents – the clock is ticking for delivering
immediate value to Antares' shareholders."

"Antares' Board must provide an immediate market update on the true status of
the takeover offer and asset sales they have announced; and we, like our
fellow shareholders, will closely monitor both the Board's disclosures and
their actions as they navigate through any sales process. We assume ASIC will
also closely examine past and current Board actions given the questionable
trading activities of some Board members including the CEO.Lone Star Value
remains a committed shareholder of Antares and we will not hesitate to take
any actions necessary to ensure that the best interests of all shareholders
are properly served."

"We want to thank our fellow shareholders for their support and contribution
to this long overdue and healthy debate about the future of our Company and we
encourage them to keep up the pressure on Antares' Board and management to
improve transparency and accountability."

Media enquiries please contact:

John Hurst – Cannings Corporate Communications
+61 418 708 663

Lone Star Value Management
+1-203-489-9500

SOURCE Lone Star Value Investors, LP
 
Press spacebar to pause and continue. Press esc to stop.