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LONDON (Alliance News) - Afren PLC Friday said the proposed takeover offer from SEPLAT Petroleum Development Co PLC will not proceed, but the Nigerian oil and gas exploration and development company said that it reserves the right to "announce an offer or possible offer or make or participate in an offer or possible offer" for Afren within the next six months under certain circumstances or with the consent of the Panel on Takeovers and Mergers.
SEPLAT referred to Note 2 to Rule 2.8 of the UK takeover code, which sets circumstances under which restrictions on new offers inside six months of a "put up or shut up" decision no longer apply.
Usually, companies that have issued a statement of intention not to make an offer are restricted from making further offers within six months of doing so.
Seplat's response confirmed that it doesn't intend to make an offer but didn't rule out future action, after Afren had said the proposals were unsatisfactory.
"The board has not received any proposal from SEPLAT that it believes is capable of being implemented on terms satisfactory to all relevant stakeholders in the company, including the indicated value being significantly below the aggregate value of the debt of the company," Afren had said earlier Friday.
"Accordingly, the board has concluded that continuing discussions with SEPLAT is not in the best interests of the company's stakeholders and will not agree to SEPLAT's request for an extension of the Deadline," added Afren.
Afren and SEPLAT both said their announcements were made without the other's consent.
Afren said it is continuing discussions with the advisers to the ad-hoc committee of its largest bond holders regarding the immediate liquidity and funding needs of the business. The company is also having discussions with its existing stakeholders and new third-party investors regarding recapitalising the company.
Afren shares were up 5.2% at 7.48 pence late Friday, while Seplat shares were up 0.1% at 129.08 pence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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