(Alliance News) - Upland Resources shares soared on Monday, after it announced that it had rejected a takeover offer that it said "significantly undervalues" its potential.
The oil and gas company with assets in Malaysia, Tunisia and the UK North Sea said it received an "unsolicited, very preliminary" takeover approach from SEC Capital for Upland shares, priced at 14 pence each.
Upland Resources shares closed at 2.93p on Friday in London. On Monday afternoon, the stock was up 89% to 5.56p each.
"The board has unequivocally rejected the approach as it believes it significantly undervalues the current potential of the company," Upland said.
The company noted that under the rules of the takeover code, SEC Capital is required to make an offer by November 20.
"There can be no certainty that a firm offer will be made for Upland nor as to the terms on which any offer might be made," it added.
By Sophie Rose, Alliance News reporter
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Upland Resource (UPL)