Antrim to review Sound Oil’s takeover bid
Canada’s Antrim Energy Inc. has responded to an announcement made yesterday, November 24, by Sound Oil that it intends to launch a public offer for 100 per cent of the share capital of Antrim Energy.
Antrim says that its board of directors will carefully review and evaluate the announcement and intended offer consistent with its fiduciary duties and in consultation with its legal and financial advisers. The company further adds that the Board will consider the intended offer as set out in the announcement with a view toward pursuing the course of action which best maximizes shareholder value and it will respond once it has completed this process.
The company has previously stated that it intends to use its strong balance sheet and licence holding to pursue opportunities either asset specific or corporate where an acquisition or a corporate combination would enhance shareholder value. Prior to the announcement, Antrim has confirmed it received an expression of interest from Sound Oil and has attempted to engage in preliminary discussions with Sound Oil to allow Antrim the opportunity to independently assess, in detail, the business and assets of Sound Oil as well as the merits, if any, of a potential combination.
Antrim concerned over due diligence
Antrim says that the company was and remains concerned by Sound Oil’s previous unwillingness to allow the company to undertake normal due diligence procedures which the Board considers important for achieving a fair outcome in the interest of all of Antrim shareholders. In conclusion, Antrim says it has invited Sound Oil to engage in a conventional dialogue.
In a statement issued yesterday, Sound Oil said it had submitted an indicative proposal to the Board of Antrim at the end of October with a view to making a recommended all share offer to combine the two companies. However, according to Sound Oil, the Board of Antrim has not responded to this indicative proposal and appears only prepared to engage in discussions if Sound Oil agrees to restrict its ability to proceed with a public offer.
Sound Oil says that having been unsuccessful in securing continued engagement with the Board of Antrim and given the strong commercial logic of the transaction, the Board of Sound Oil has decided to announce its Intended Offer for Antrim.