(Alliance News) - Upland Resources Ltd shares plummeted on Monday, after it announced that sales talks regarding a takeover offer have fallen through.
Shares in the firm were down 40% at 2.70 pence each in London on Monday morning.
The London-based oil and gas company, which has assets in Malaysia, Tunisia and the UK North Sea, first informed investors of a "very preliminary" takeover offer from SEC Capital last Monday.
At the time, Upland said that the unsolicited offer of 14p per share "significantly" undervalued the company's potential, and "unequivocally" rejected the approach.
Nevertheless, under the rules of the takeover code, SEC Capital was required to make an offer by November 20.
In an update this Monday, Upland Resources said that once the offer period began, SEC Capital became "unengaged" and failed to sustain communications.
Further investigation and evidence produced by the firm's advisors and lawyers eventually led it to conclude that the potential offeror was not bona fide. This was confirmed by a takeover panel.
Upland now intends to seek advice on potential further action, and said it would support any investigations by relevant authorities.
Looking ahead, the company said it would now be focusing on exploring, appraising and developing Block SK334 in Sarawak, Malaysia.
"The Upland team have spent many years working to progress Block SK334 in Sarawak and to countenance any premature, preliminary offers is not part of this particular company's strategy," said Chief Executive Officer Bolhassan Di.
"We can assure shareholders that this has not detracted the company from the task at hand, fundamentally the business is in the strongest position it has ever been in and operationally we are now ready to finalise the joint technical study and progress towards the SK334 onshore drilling campaign with preparatory work commencing in 2024."
By Holly Beveridge, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Upland Resource (UPL)