The West Australian
Somalilandsun: Shares in Jacka Resources jumped after it announced a friendly, all-scrip takeover offer from Tangiers Petroleum, valuing the Africa-focused oil and gas explorer at $37 million.
Under the terms of the offer, Jacka shareholders would receive 0.468 shares in Tangiers for every share they hold, putting a value on Jacka shares of 11.2 cents based on last closing prices before the offer.
Jacka’s board has unanimously recommended shareholders accept the Tangiers offer in the absence of a superior proposal.
In a joint statement, the companies said combining would deliver a strong portfolio of highly prospective exploration, appraisal and development assets in Africa.
“A combination of Tangiers and Jacka offers a compelling opportunity for investors seeking exposure to a growth-focused ASX and AIM-listed small to mid-cap oil and gas company with multiple projects from high-impact exploration to near-term appraisal and development opportunities,” the statement said.
Eve Howell would remain as chairman of Tangiers with Jacka managing director Bob Cassie continuing as managing director of the new entity.
The takeover is subject to 90 per cent minimum acceptances.
Jacka has interests in exploration projects in Tunisia, Nigeria, Tanzania, Somaliland and Australia, while Tangiers has interests in offshore Morocco and Australia.
Jacka shares closed up 1.6 cents, or 22.22 per cent, at 8.8 cents while Tangiers shares were off 3.5 cents, or 14.58 per cent, at 20.5 cents.