Capricorn Energy merger vote halted after directors quit

Three top directors of Capricorn Energy are stepping down, prompting the company to delay a shareholder vote about a £277m merger.

The oil company’s chairman and chief executive will quit the board immediately, and its chief financial officer will follow suit in the near future. Capricorn plans to merge with Newmed Energy in a deal first announced in September.

“In view of these developments and the resignation of most of the Capricorn board members, the partnership estimates that the probability for the closing of the transaction has significantly decreased,” Newmed said in a statement. Capricorn’s shares stayed level yesterday, trading at 244p.