Capricorn ‘puts forward’ hedge fund exec for board

Edinburgh-based oil and gas firm Capricorn Energy announced it will “put forward” Palliser Capital executive Sachin Mistry for election as non-executive director at its 2024 Annual General Meeting.

Capricorn Energy said Mistry is a portfolio manager at Palliser Capital, a multi-strategy hedge fund and one of the largest investors in Capricorn with a shareholding of 10.6%.

Capricorn, formerly called Cairn Energy, has experienced a tumultuous recent history, with two aborted merger deals and a revolt by shareholders that ousted the company’s former executive leadership. The firm’s share price is down more than 80% for the past 12 months.

In a stock exchange statement, the Edinburgh company said: “Capricorn Energy PLC today announces that, following consultation by the board with a broad range of shareholders, it has entered into a Relationship Agreement with Palliser Capital and Mr Sachin Mistry, pursuant to which Mr Mistry will stand for election as a Non-Executive Director at the Annual General Meeting to be held on 23 May 2024.

“Subject to shareholder approval, Mr Mistry will join the board with effect from the close of the Annual General Meeting.

Mr Mistry is a Portfolio Manager at Palliser Capital, a multi-strategy hedge fund and one of the largest investors in Capricorn with a shareholding of 10.6%.

“He will add to the board’s oversight of the company as it advances its long term strategic priorities to drive the most value for shareholders.

“He brings to the board more than 20 years of investment, advisory, and financial strategy experience.

“Prior to joining Palliser Capital, he served as portfolio manager at LIM Advisors and before that he was an executive director at Elliott Advisors for more than eight years.

“He is not a director of any other listed companies.”

Capricorn added: “Under the provisions of the UK Corporate Governance Code, Sachin Mistry will not be considered to be an independent non-executive director.

Capricorn, Palliser and Sachin Mistry have entered into a Relationship Agreement which covers share dealings and other corporate governance matters.”

Capricorn Energy chairman Craig van der Laan said: “I look forward to working closely with Sachin who will be an important source of shareholder perspectives and views on strategic priorities.”

Mistry said: “It is a privilege to be joining the board at this time, and I look forward to working with the board members and management team to execute on the next phase of their plans to maximise shareholder value.”

Capricorn Energy also announced that the Securities and Exchange Board of India (SEBI) has issued an order dated March 12, 2024, related to the non-payment of a dividend to Capricorn UK Holdings Limited by Vedanta Limited (Vedanta).

“Vedanta has been ordered to pay approximately $9.5m within 45 days of the date of the order,” said Capricorn. “Vedanta is entitled to challenge the order prior to expiry of the 45-day period.”