Natural resources investment company Polo Resources has offered to acquire up to 9.37m shares in Signet Petroleum, the company reported Wednesday.
The offer is conditional to achieving more than 50% of the issued share capital of Signet and to regulatory and TSX approval.
Signet shareholders have been offered 40 new shares in the capital of Polo for each target share acquired by the company.
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Polo, which has a market capitalisation of £55.29m, will be interested in 47.05% of the issue share capital of Signet if all target shares are attained.
Should all Signet shareholders accept, Polo will issue up to 375m consideration shares, representing 16.35% of the current issued share capital of the firm.
The offer values each target share at approximately 153p, based on Polo's most recent net asset value statement on October 1st. Target shares have an implied value of 98p each, based on the market price of the company's share at close of business December 11th.
The offer remains open to shareholders until December 20th.
RD
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