Antares' special meeting

Shareholders backed the existing board and management of Antares Energy at this week's long awaited meeting. Agitator Lone Star Value Investors – which owns about 6% of the company – was calling for the replacement of board members with its own nominations. That was voted down easily enough.

That doesn’t mean a return to normality for Antares, however. The company disclosed that it had received a takeover offer for the whole business, though it declined to name a price, the acquirer or any other relevant details. We're tiring of management's antics and, although we think the business is half-price, we have one eye on the exit.

Investors who have followed this recommendation have made reasonable gains – the share price is up 30% since our initial recommendation in Antares Energy: shale we dance? from 24 Sep 12 (Speculative Buy - $0.48) and we should expect more. But management seems intent on name calling and playing games rather than realising asset value.

A price of about US$300m, which Antares says it was offered for its assets for a second time, would equate to about 75 cents per share after costs. A year ago we were unhappy with that outcome. Now, weary of management’s games, we’d happily accept. In any case, this affair is likely to draw to a close soon. In the meantime, the share price is flat since 8 Jul 14 (Hold - $0.625) and we’re sticking with HOLD.  

Note: The Growth portfolio owns shares in Antares Energy.