By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- First listed Nigerian oil and gas upstream firm, SeplatPetroleum Development Company Plc has announced no offer for Afren Plc, a U.K. oil and gas explorer.
The Nigerian company in an issuer’s announcement with the Nigerian Stock Exchange (NSE) said it had completed extensive due diligence on Afren and made a written proposal to the board of the company that provided critical and significant near-term liquidity and value for the stakeholders of Afren.
Seplat says this is coming on the heels of the announcement made by Afren that it has decided not to agree to its request for a timetable extension, in accordance with Rule 2.6(a) of the UK Takeover Code.
“In light of Afren’s decision, Seplat confirms that it does not intend to make an offer for Afren,” the first listed Nigerian oil and gas upstream firm affirmed.
According to Seplat, this announcement is made in accordance with Rule 2.8 of the Code.
The company further affirmed it reserves the right to announce an offer or possible offer or make or participate in an offer or possible offer for Afren (and/or take any other action which would otherwise be restricted under Rule 2.8 of the Code) within the next six (6) months following the date of this announcement in the circumstances set out in Note 2 to Rule 2.8 or with the consent of the Panel on Takeovers and Mergers.
The UK oil and gas explorer company on Friday said it has concluded its takeover bid talks with Seplat.
Afren said it would not agree to a request for an extension of deadline from Seplat to make a firm offer.
“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,” Afren affirmed.
In the same vein, Afren’s board said 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.
Afren had on 22 December 2014, announced it had received a highly preliminary approach from Seplat regarding a possible combination with it.
The company added that in accordance with Rule 2.6(a) of the UK Takeover Code Seplat was initially given January 30 to make a firm offer. However, it was later postponed on the request of seplat for extension and was later given till February 13, 2015 to 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, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.
Shares of Seplat at the close of trading on the Nigerian bourse monday gained N19.00 climbing up 4.94 percent.
