19th Jan 2015 09:27
LONDON (Alliance News) - Mosman Oil and Gas Ltd Monday said it has significantly improved its takeover offer for Australian Securities Exchange-listed MEO Australia Ltd.
Mosman's previous offer of one Mosman share for every 20 MEO shares has now been improved. Mosman will now offer MEO shareholders one Mosman share for every 10 MEO shares. The offer will be formally sent out to MEO in January, and to MEO shareholders in February.
The board of MEO have advised its shareholders that it will consider its opinion on the Mosman proposal in light of Neon Energy Ltd pulling out of its own bid to acquire MEO last year, said Mosman.
"This is a good opportunity for shareholders of both Mosman and MEO. The combined entity can fund exploration, preserve longer term assets and progress to production and cash flow," said Mosman Executive Chairman John Barr.
Mosman said MEO had around AUD10 million in cash at the end of 2014. MEO holds a series of permits located mainly in Australia and New Zealand.
Mosman shares were up 3.5% to 5.95 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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