On 22 December 2014, Afren plc announced that it had received a highly preliminary approach from SEPLAT Petroleum Development Company plc (Seplat) regarding a possible combination with Afren.
Seplat was the required In accordance with the UK Takeover Code, by not later than 5.00 p.m. on 13 February 2015 to either announce a firm intention to make an offer for Afren or announce that it does not intend to make an offer for Afren.
Seplat has however requested an extension to the Deadline according to a statement by Afren.
The Board has not received any proposal from Seplat that it believes is capable of being implemented on terms satisfactory to all relevant stakeholders in the Company, including the indicated value being significantly below the aggregate value of the debt of the Company.
Accordingly, the Board has concluded that continuing discussions with Seplat is not in the best interests of the Company’s stakeholders and will not agree to Seplat’s request for an extension of the Deadline.
The Company says it is continuing discussions with the advisers to the ad hoc committee of its largest bond holders regarding the immediate liquidity and funding needs of the business.
On January 30th Afren announced it had obtained from the lenders of the US$300m Ebok debt facility a deferral of the US$50m amortisation payment due on 31 January 2015 until 27 February 2015.
The Company is also having discussions with its existing stakeholders and new third party investors regarding recapitalising the Company.
Afren has operations in 11 countries across Africa and the Middle East including Kenya, Tanzania, Seychelles, Ethiopia and Madagascar in East Africa.