Antrim Energy is considering a $10 million all share acquisition offer made public by UK independent Sound Oil yesterday.
Antrim said its board will “carefully review and evaluate the announcement” and respond once the review has been concluded.
Sound announced its intention to make a public offer to buy Antrim after a proposal submitted in October failed to receive a response.
Antrim confirmed that it had received the October offer and said it “has attempted to engage in preliminary discussions” but was “concerned” by Sound’s “unwillingness” to allow Antrim to perform “normal due diligence.”
The newest deal would offer 0.3198 Sound shares for each share of Calgary-based Antrim.
Each Antrim share would be valued at about 5 cents (3.44p), with the total value of the company’s issued share capital coming in at $9.96 million.
Sound said the deal would provide the merged companies with a cash balance of about $36 million.
A merger would add Antrim’s 25 percent stake in the offshore Ireland Skellig block to Sound’s portfolio.
The proposal also calls for the closure of Antrim’s Calgary office and an “associated headcount reduction.”
Antrim suggested that it was open to an acquisition deal but did not comment on the specifics of Sound’s latest offer.
“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 an acquisition or a corporate combination would enhance shareholder value,” Antrim said.