- Afren Plc announced it received a “highly preliminary approach from SEPLAT Petroleum Development Company plc (“Seplat”) regarding a possible combination with Afren.”
- Afren also reports 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.
- Thus, Seplat has until Jan. 19 to make a firm intention to make an offer, Afren.
- Whilst it called this a “possible combination” this bears the hallmark of an Acquisition Approach in our opinion
- According to Reuters, Shares in theAfren Plc surged as much as 22 percent to 58 pence on Monday morning on the London Stock Exchange. Seplat’s London-listed shares rose 10 percent to 112.43 pence.
- Seplat, which lost out on the assets that Royal Dutch Shell divested in October, has been on the hunt for acquisitions in Nigeria, encouraged by falling oil prices, but said it would not pay over the odds
- Seplat shares opened with a 5% bump on Monday.
- Press release from Afren
