Sources inform ''Globes'' that a group of partners in Givot Olam Oil Exploration Limited Partnership (TASE:GIVO.L), who own over 10% of the partnership altogether, are demanding to add topics to the agenda of the upcoming general meeting scheduled for February 21. "Globes" obtained a copy of the letter that they sent today to the general partner.
The writers jointly own 525,575,000 partnership units in Givot Olam, over 10% of the firm. Givot Olam's general partner, which effectively manages the firm, owns 4.4% of the partnership units. The general partner has four directors: Tovia Luskin, Nogah Ben David, Shmuel Laurence Becker, and Moshe Kelner.
The group of limited partners are demanding the appointment of an outside attorney to represent them vis-a-vis the general partner. This attorney will be nominated and approved by the partnership unit holders at the meeting. The group also wants Givot Olam's limited partnership agreement to be amended to reduce the royalties and other payments to the general partner and its members, and to increase the royalties paid to the other partners. The amount of the changes will be determined in negotiations between the general partner and the other partners.
Givot Olam investor Shai Tzaba told "Globes", "We're talking about a critical moment in which the investors can influence the general partner before discovery of the oil wells. If oil is found, the general partner will get 20% of the revenue from the discovery, much more than the market norm." He added that the market norm is 5-10%. Tzaba chaired Givot Olam's previous general partnership holders meeting.
Tzeva's comments indicate that the group of partners wants to increase its rights in Givot Olam if oil is discovered.
Givot Olam owns the Meged 4 oil well near Rosh Ha'Ayin, where oil was discovered last month. Production tests are now underway to find out whether the well has commercial quantities of oil.
Givot Olam's share rose 1.6% in morning trading today to NIS 0.064, giving a market cap of NIS 356 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2010
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