By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE) – First listed Nigerian oil and gas upstream firm, Seplat Petroleum Development Company Plc said on Thursday confirmed to the Nigerian Stock Exchange (NSE) its proposed merger deal with Afren Plc, a U.K. oil and gas explorer.
Seplat said the notice is in accordance with the provisions of Section 10 of the Amended Listing Rules of NSE. “Seplat confirms that it has made a highly preliminary approach regarding a possible combination with Afren. Seplat however notes that there can be no certainty that an offer will be made or as to the terms of any offer,” the first listed Nigerian oil and gas upstream firm affirmed.
According to the company, it acknowledges that in accordance with Rule 2.6(a) of the UK City Code on Takeovers and Mergers (the “Code”), by no later than 5.00 pm on 19 January 2015, it must either announce a firm intention to make an offer under Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.
“Seplat notes that this deadline can be extended with the consent of the UK Takeover Panel (the “Panel”) in accordance with Rule 2.6(c) of the Code,” the notice added.
Seplat further affirmed that further details cannot be provided at this stage in respect of the deal due to the highly preliminary status of events but assures that further announcements will be made as soon as the need arises.
On December 22 2014, Afren in a statement on its website announced it has given Seplat until January 19, 2015 deadline to make a firm offer on its proposed merger with it.
“There can be no certainty that an offer will be made or as to the terms of any offer.
Afren notes that in accordance with Rule 2.6(a) of the Code, by no later than 5.00 p.m. on 19 January 2015, Seplat must either announce a firm intention to make an offer for Afren under Rule 2.7 of the Code or announce that it does not intend to make an offer for Afren, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code,” Afren said.
At the close today’s trading on the Nigerian bourse, Seplat lost N17.24 opening at N317.24 and closing at N300.00 declining by 5.43 percent.
