SDX Energy PLC - London-based oil and gas company - Canada-headquartered Tenaz Energy Corp "evaluating options" after SDX Energy PLC shareholder Aleph Commodities Ltd announces intention to vote against merger of Tenaz and SDX.
Aleph Commodities holds 25.7% stake in SDX.
Tenaz notes for merger to become effective, 75% of SDX shareholders must vote in favour of deal.
Earlier Monday, SDX says Aleph sends letter noting intention to vote against agreed all-share merger.
The letter from Aleph adds: "Aleph welcomes the opportunity to engage with management and the board of directors to explore opportunities to provide financial, commercial and technical support to SDX to ensure the growth of the company and its production base, with minimal dilution."
Shareholder vote is scheduled to be July 29.
In May, SDX agreed to be acquired by Tenaz Energy in a deal valuing SDX at GBP21.4 million. SDX shareholders will receive 0.075 of a Tenaz share for each SDX share. SDX shareholders to hold a 36% stake in Tenaz upon completion.
Current stock price: 10.20 pence, down 4.0% on Monday
12-month change: down 33%
By Paul McGowan; paulmcgowan@alliancenews.com
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SDX Energy (SDX)