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Wentworth Resources faces concerns over potential takeover

9th Jun 2023 18:03

(Alliance News) - Wentworth Resources PLC on Friday said it has faced "a number of concerns" over it being taken over by Etablissements Maurel & Prom SA

In February, the Tanzania-focused natural gas production company said 75% of votes cast at the court meeting supported the GBP61.7 million takeover deal agreed in early December. It then passed at the general meeting by the same margin.

However, on Wednesday, the company and M&P attended a preliminary hearing before the FCC in Tanzania, at which various Tanzanian governmental parties were present.

At the hearing, Wentworth said a number of concerns were raised, which may impact the likelihood of the FCC to approve the acquisition in its current form. A ruling is expected within the coming weeks, it added.

"M&P and Wentworth intend to consult with relevant Tanzanian government stakeholders about how these concerns may be satisfactorily addressed," the company said.

Further, it noted that there can be no certainty that the conditions will be satisfied. If they are, the acquisition will now complete in the second half of this year.

Shares in Wentworth closed down 0.5% to 30.20 pence each in London on Friday.

By Sophie Rose, Alliance News reporter

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