LONDON (Alliance News) - Afren PLC shares plummeted on Friday after it said the proposed takeover offer from SEPLAT Petroleum Development Co PLC will not proceed after the company failed to find any proposals made by SEPLAT as "satisfactory."
Afren shares were down 42.7% to 74.08 pence per share on Friday afternoon, comfortably the worst performer in the FTSE 250.
"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," said Afren.
"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.
The announcement was made without SEPLAT's consent, said the company in a statement.
Afren 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.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Seplat Energy (SEPL)