21 C
Fort St. John
Monday, May 20, 2019
9924 101 ave Fort St. John, B.C.
Advertisement
Home Canadian Press U.S. hedge fund reports owning more than a 5% stake in Obsidian...

U.S. hedge fund reports owning more than a 5% stake in Obsidian Energy

Advertisement

CALGARY — Activist investor FrontFour Capital says it will attempt to influence decisions at Calgary-based Obsidian Energy Ltd. (TSX:OBE) after accumulating more than 27 million shares.

The Greenwich, Conn.-based hedge fund says in a declaration filed with the U.S. Securities and Exchange Commission that it has a 5.5 per cent stake in the oil and gas company formerly known as Penn West Petroleum. The filing is required if any entity owns more than five per cent of a publicly traded company.

The filing says that the shares were purchased because they are undervalued and therefore represent an attractive investment opportunity.

FrontFour says it has been in touch with company directors to discuss its strategy and board composition and says it intends to continue the communication, without being specific.

FrontFour’s principal owner is listed as Zachary George, the son of former Obsidian chairman Rick George, who died in August.

Obsidian shares gained six per cent or 10 cents Tuesday to close at $1.70.

The Canadian Press

get the latest news in your inbox

Author

Advertisement

Local Events

Must Read

RCMP seek public’s assistance in relation to old Peace River Haven...

DAWSON CREEK, B.C. - Dawson Creek RCMP are asking for the public's assistance in relation to a fire that destroyed the old Peace River...