(Alliance News) - Shares in Range Resources Ltd fell Friday after it failed to come to an agreement for the acquisition of an educational business in China.
Range had first announced the deal in March. It was considered a reverse takeover, so Range's shares were suspended until Friday's announcement, and were down 20% at 0.020 pence each in London.
Range said it was not able to come to acceptable terms with the seller, so talks have been terminated.
The company had agreed a debt restructuring with major shareholder LandOcean Energy Services Co Ltd, but this was conditional on the acquisition going ahead. It currently owes USD91 million to LandOcean, including a USD20 million convertible note due for repayment in November.
Range is continuing talks with LandOcean over revising terms for the repayment of the debt.
Chair Kerry Gu said: "During the last several months, we have been tirelessly working to progress with our key objective of restructuring and once again I thank my fellow shareholders for their patience during this challenging period.
"Despite our best efforts, we could not agree terms on the Chinese education transaction that would be beneficial for Range shareholders and have decided to terminate any further negotiations on that transaction and focus our efforts on securing alternative transaction opportunities. We will look to update the market as and when appropriate."