Reports suggest Afren Plc has rejected another offer of extension by Seplat after the Nigerian oil and gas producer failed to come meet its deadline of February 13th, 2015 to come up with an offer or bounce. Afren Plc subsequently said it had ended talks with Nigeria’s Seplat Petroleum Development Co Plc over a potential sale of the company.
Here is a summary of Afren’s press release;
- SEPLAT has requested an extension to deadline (this would have been the third extension had it been granted)
- Had received a highly preliminary approach from SEPLAT Petroleum Development Company Plc regarding a possible combination with Afren
- Continuing discussions with advisers to ad hoc committee of its largest bond holders regarding immediate liquidity and funding needs of business
- Has concluded that continuing discussions with SEPLAT is not in best interests of company’s stakeholders and will not agree to SEPLAT’s request for an extension of deadline
- Also having discussions with its existing stakeholders and new third party investors regarding recapitalising company Source text for Eikon: Further company coverage
- Seplat Shares rose 4.56% to close at N385 in the Nigerian stock exchange
