PERTH (miningweekly.com) – ASX-listed junior Zeta Resources has made a play for fellow listed Pan Pacific Petroleum, offering Pan Pacific shareholders either 3.8c in cash for each share held, or one Zeta share for every ten Pan Pacific shares held.
The offer valued Pan Pacific at A$22.1-million, with the cash offer price representing a 41% premium to Pan Pacific’s last closing price on the ASX, while the share offer represented a 42% premium to the company’s last closing price.
Zeta already has a 50.91% interest in Pan Pacific, and has told the remaining shareholders that the cash consideration offered an opportunity to realise immediate value for their shares, while the share consideration would allow shareholders to hold an interest in Zeta.
“This is a compelling proposal and provides Pan Pacific shareholders with the opportunity to realise a significant premium, either by cash or Zeta scrip,” said Pan Pacific director Patrick Burke.
The company’s independent directors have unanimously recommended that shareholders accept the offer in the absence of a superior proposal, and subject to an independent expert concluding that the offer was in the best interest of shareholders.
Pan Pacific recently completed the sale of its 15% interest in the Tui areas oilfields, offshore New Zealand, as well as its 5% interest in a Vietnamese block.
Zeta earlier this year also launched an offmarket takeover offer for fellow listed Bligh Resources, offering 3.8c a share for the Australian company which was developing the Bundarra gold project, in Western Australia.