(Alliance News) - Hardy Oil & Gas PLC has edged closer to being acquired by Blake Holdings Ltd, with Blake on Wednesday reporting it owns or has received valid acceptances for around 67% of shares in the Scotland-based exploration firm.
However, Hardy on Wednesday said its board is still unable to make a recommendation for the takeover bid.
Shares in the company were 15% lower in early trade on Wednesday in London, at 4.82 pence each.
On Tuesday Blake, which was already a Hardy investor, said its mandatory offer became unconditional as it owned or had received valid acceptances from around 57% of shareholders, passing the 50% threshold.
On November 25, Blake agreed to buy 9.2 million Hardy shares and, as such, was required to make a mandatory cash offer for all of the company's shares. Blake is offering 5.00p per share in a GBP3.7 million bid.
Hardy in December said the 5.00p per share acquisition offer from Blake is a 54% discount to its 10.90p net asset value per share at the end of November.
Hardy added the proposed offer also represents a 15% discount to the firm's 5.75p closing price on November 22, the last trading day before Blake's offer period commenced.
However, Hardy said directors were unable "to give a recommendation to accept or reject the offer".
Executive Director Richard Galvin does not plan on accepting the offer, Hardy said, though Non-Executive Chair Alasdair Locke and Non-Executive Director Peter Milne will accept the bid in the event that it becomes unconditional.
Both Blake and Hardy added the offer will remain open until 1300 GMT in London on January 21.
By Eric Cunha; ericcunha@alliancenews.com
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