Harbour Energy said on Friday that largest shareholder, EIG Asset Management, has distributed some of its stake in North Sea's biggest oil and gas producer to existing investors, resulting in a dilution in its holding to 16% from 37%.
The share distribution follows the merger of debt-laden Premier Oil Plc with private equity Chrysaor Holdings to form Harbour Energy in October 2020.
EIG had then held 36% stake in the newly formed company and has now distributed some of the shares in it to fund investors.
The development also comes as Harbour Energy grapples with Britain's 25% windfall tax on oil and gas producers' profits, the consequence of which could lead Harbour to shrink its investments in the country.
Harbour on Friday also requested that both EIG-nominated directors R Blair Thomas and Steve Farris remain on the board due to their "value and contribution," and said Blair Thomas will continue to hold his position as chairman.
EIG's reduced stake now entitles the shareholder to only one nominated director.
Shares of Harbour, which are down about 9% so far this year, rose 2% on Friday.
(Reporting by Radhika Anilkumar in Bengaluru; editing by Uttaresh.V)