Ithaca Energy Inc. has ceased discussions with all parties regarding the potential acquisition of all of the outstanding shares of the Company. As previously announced, the Company received, initially, a confidential, non-binding proposal to acquire all of the outstanding shares of the Company and, subsequently, a number of unsolicited approaches from third parties.
The Board has concluded that continuing the current process at this time was unlikely to produce a transaction with financial terms that properly reflect the value of the Company, particularly in light of the current volatility in global markets and the short term softening in Brent crude prices. In reaching this decision the Board of Directors has fully considered the Company’s current value, its growth potential, the future value that can be delivered to shareholders and the responses of the third parties with whom discussions have been held.
Ithaca is firmly positioned to continue building upon its track record for delivering long term shareholder value through creatively growing the Company and maximising the value of its UK North Sea oil and gas assets.
Jack Lee, Non-Executive Chairman, commented:
“The responsibility of the Board is very clear; to consider the best possible way to maximise shareholder value. Following the discussions that have been held with all parties that have expressed an interest in the Company, the Board has unanimously concluded that this would not currently be achieved through continuation of such discussions. To this end, the decision has been made to end the process and allow the Company to focus on delivery of its long term growth plans.
“Since January, the Company has delivered first oil from the Athena field, obtained UK Government approval for the joint Stella and Harrier Field Development Plan and secured a significantly increased debt facility. These represent key value milestones for the Company and establish a springboard for continued growth. The Company now looks forward to fully Delivering upon its growth objectives, efficiently utilising its enhanced financial resources and further establishing its position as a dynamic North Sea operator.”
Offshore Energy Today Staff, May 29, 2012