LONDON (Alliance News) - Rockrose Energy PLC on Monday said it has offered to buy Independent Oil & Gas PLC's debt owed to a lender now in administration.
Rockrose has offered GBP40.0 million in cash for the debt owed by IOG to London Oil & Gas Ltd, whose administration is being managed by Smith & Williamson LLP.
Earlier March, IOG rejected a GBP27 million takeover offer from Rockrose, saying it was opportunistic and undervalued it. The offer was 20 pence a share, with shares down 5.5% at 19.14p on Monday.
Rockrose shares are currently suspended from trading as its separate Marathon Oil Corp deal closes.
Rockrose has been denied IOG's debt facility agreement documents, it said, but it does not believe it needs to conduct due diligence for the debt offer.
"RockRose considers the refusal of IOG or the administrators to meet requests to provide RockRose with the terms of the IOG debt facilities has hampered RockRose's ability to assess the full implications of the convertible instruments on any possible offer," said Rockrose.
"It is clear that, from the limited information that is in the public domain, the IOG debt facilities and associated convertibles could account for more than 50% of the fully diluted equity share capital of IOG were the conversion rights to be exercised in full."
"RockRose has made requests to AIM Regulation and other regulators requesting that IOG disclose its fully diluted share capital in order to give all parties transparency as to the position," it continued.
Rockrose has had no response, it said, despite the "clear pressing need to recover cash".
Executive Chair Andrew Austin commented: "The continued lack of clarity and failure of IOG (and its direct and indirect lenders, both now in administration) to disclose the key terms of its indebtedness and the very material extent of the dilutive instruments is unusual in the current circumstances."
"We sincerely hope and expect both the LCF administrator will provide feedback on our offer and that IOG will take steps to make full disclosure of the position of the dilutive instruments."
