Business
Statement by IOG & End of Offer Period
Statement by IOG & End of Offer Period.
About this update from Deltic Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0868B\n Deltic Energy PLC\n 05 October 2020\n \n \n \n \n 5 October 2020\n \n \n \n \n \n Deltic Energy Plc/ Index: AIM / Epic: DELT / Sector: Natural Resources\n \n \n \n Deltic Energy Plc (\"Deltic\" or \"the Company\")\n \n \n \n Statement by Independent Oil and Gas plc\n \n \n End of Offer Period\n \n \n \n \n \n Deltic Energy Plc, the AIM quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern and Central North Sea, notes the announcement made by Independent Oil and Gas plc (\"IOG\") stating that IOG does not intend to make an offer for Deltic. Deltic is therefore no longer deemed to be in an \"offer period\", as defined in the City Code on Takeovers and Mergers.\n \n \n \n \n The Board of Deltic received an initial approach from IOG in late August 2020 regarding a proposal to effect an all share merger of IOG and Deltic (the \"Initial Proposed Merger\"). The terms of the Initial Proposed Merger implied an offer value at that time which was less than Deltic's cash balance and as such placed no immediate value on Deltic's significant portfolio of non-cash assets, not least its interests in Pensacola and Selene, its two most advanced prospects in which it is partnered to drill with Shell and where Deltic benefits from a significant carry on each. This initial approach from IOG made reference to a possible mechanism for further value to accrue to Deltic shareholders, linked to commercial success at Pensacola only, but did not include any detail as to the quantum or structure of this mechanism.\n \n The Board reviewed the terms of the Initial Proposed Merger with its advisers and considered that the terms materially undervalued Deltic, and it was rejected on 2 September 2020.\n \n The Board of Deltic received a further proposal from IOG on 25 September 2020, with amended terms for a proposed all share merger of the two companies (the \"Amended Proposed Merger\"). Whilst the terms represented an improvement on those contained in the Initial Proposed Merger, the terms implied a discount of greater than ten per cent. to the market value of Deltic's ordinary shares based on the closing mid-market price of a Deltic and IOG ordinary share on 24 September 2020, the day ...