20th Oct 2014 05:38
LONDON (Alliance News) - Speculation is intensifying that FTSE 250 oil and gas explorer Afren PLC could become the target of a takeover bid after filings revealed a company founded by a former Nigerian general has amassed a significant shareholding in the business, The Daily Telegraph reported on Saturday.
South Atlantic Petroleum, or SAPetro, has built up a stake of nearly 7.1% in the company in the last few weeks following a plunge in the group's share price in July after it revealed it had suspended its chief executive and chief operating officer. Both were dismissed in the past week for "gross misconduct" following and investigation at the company into "unauthorised payments".
SAPetro is controlled by General Theophilus Danjuma, the former Nigerian defence minister. The speed at which it has built up its stake has led to speculation in the market that his company could make a bid for Afren.
http://www.telegraph.co.uk/finance/newsbysector/energy/11170996/Nigerian-general-boosts-Afren-stake.html
By Sam Unsted; [email protected]; @SamUAtAlliance
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