Regal suitor told to clarify intentions

7th Feb 2011 18:16

The takeover panel has ordered Cypriot finance house Heamoor, which is considering an offer for oil group Regal Petroleum, to announce a firm intention to make an offer for the company or walk away.Trading in AIM-listed oil firm Regal Petroleum was suspended last week as the company unveiled details of a possible alternative offer to a recommended takeover by Energees Management, involving Heamoor. Following completion of a reverse takeover, Regal shareholders (excluding the shareholders of Geo-Alliance) would have the option to sell their Regal shares to Heamoor for a period of three months at a price of 25p per Regal share, a price that tops the 24p per share cash offer from Energees.Heamoor or Geo-Alliance is prepared to make a straight cash offer of 25p per Regal share in the event that, by an as yet unspecified date, the necessary approvals to implement the acquisition are not agreed to by the Regal shareholders in a general meeting, or if the merged company's shares are not listed on AIM."Heamoor must clarify this statement, for the purposes of Note 1 on Rule 19.3, by 5.00 pm on Thursday 10 February 2011 by announcing either a firm intention to make an offer for Regal under Rule 2.5 of the Code or announcing that it does not intend to make an offer for Regal," the takeover panel said today.