Regal Petroleum (LON:RPT) noted the recent share price rise and confirmed it is in final-stage discussions in relation to a possible all-cash offer for the company at 24 pence per share.
The stock has been buoyed in the past weeks after Regal became a potential takeover candidate. A fortnight ago, Regal announced it had received a number of takeover approaches and was in preliminary talks which may lead to the sale of company. The stock shot up around 50 percent to an intraday high at 19 pence on the day the approaches were announced.
Regal’s statement on November 25, and the ensuing rally, was prompted by an article in The Times, which cited speculation that an un-named Australian firm was interested in buying the company for up to 22p per share. However analysts said then that interest could also come from within the Ukraine itself and possibly from Konstantin Zhevago, the influential local businessman who is the major shareholder in Ferrexpo (LON:FXPO), with a 51 percent stake.
The stock rose sharply yesterday and got a further boost today after regal confirmed the possible cash offer at lunchtime. Shares were trading up 21.62 percent shortly afterwards at 22.5p.
“It is emphasised that there can be no certainty that an offer for the company will ultimately be made or as to the terms on which any such offer might be made. This announcement is being made with the consent of the potential offeror,” the company said.
Regal has had a rather bumpy time of late following the departure of chief executive David Greer and ongoing problems with the environmental ministry in the Ukraine, which has led to the shutdown of its operations there.
The company began a strategic review of its business at the end of September.