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Afren-Seplat deal off the cards

13th February 2015

Afren plc. has abandoned hope that Nigerian explorer Seplat Petroleum Development would make a takeover offer for the company

Afren plc. has abandoned hope that Nigerian explorer Seplat Petroleum Development would make a takeover offer for the company
Afren has discontinued takeover talks with Seplat

Afren has discontinued talks with Seplat over a possible takeover of the London-listed company.

“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 said today in a statement.

Seplat had until 5pm today 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 for Afren.

It requested an extension of this deadline but Afren declined.

“Accordingly, the board has concluded that 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.  This announcement is made without Seplat's consent,” Afren said in the statement.

“The company is continuing discussions with the advisers to the ad hoc committee of its largest bond holders regarding the immediate liquidity and funding needs of the business.  The company is also having discussions with its existing stakeholders and new third party investors regarding recapitalising the company.”

Seplat made its initial offer for Afren in December and has twice extended its decision deadline.

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