Canada’s Antrim Energy has determined that the Intended Offer received from Sound Oil to acquire the entire issued share capital of Antrim for shares of Sound Oil is not in the best interests of Antrim shareholders.
Sound Oil announced its intention to launch a public offer for Antrim Energy in November. At the time, Antrim responded to Sound Oil’s announcement by saying that its board of directors will review and evaluate the offer.
Antrim Energy now says that after careful consideration, including a report and recommendation of a Special Committee of Independent Directors and in consultation with its financial and legal advisers, the Board of Directors has concluded that the Intended Offer does not meet the criteria established by the company as critical to significantly enhance shareholder value, nor does it recognize the value of Antrim’s assets and prospects.
“The Company has previously stated that it intends to use its strong balance sheet and licence holding to pursue opportunities either asset specific or corporate where a corporate combination or an acquisition would enhance shareholder value. At last week’s annual general meeting, shareholders overwhelming demonstrated their support for continuing with this strategy,” said Stephen Greer, Chairman of Antrim’s Board of Directors.
Carlingford GFI Brokers Limited acted as financial advisers to the Special Committee in its review of the Sound Oil announcement and Intended Offer.