The Dublin-listed oil and gas group Aminex has dismissed as "opportunistic" an unsolicited takeover bid from Apple Oil & Gas, a British Virgin Islands-registered company with a listing on the Ofex over-the-counter market in London.
The bid from Apple is an extraordinary one as it is probably the first time that an OTC company like Apple has tabled a bid for a company with a full stock market listing. But market sources believe the structure of the bid is such that it is likely to find few takers among Aminex's shareholders.
Aminex shares prior to the bid were trading at 27p sterling, but Apple's offer of four of its own shares for every 11 Aminex shares values Aminex shares at just 2.36p sterling each and the company at just £1.8 million sterling (€2.95 million). But Apple's offer also includes a commitment to sell all of Aminex's non-cash assets and distribute some of the proceeds to shareholders.
Aminex chairman Mr David Elwes was utterly dismissive of the bid from Apple. "Apple's proposal amounts to an opportunistic raid on Aminex's cash balances. It is a paper offer which wholly fails to represent the value of Aminex's assets," he said.
Analysts in Dublin were also sceptical and one analyst said it was highly unlikely Aminex shareholders would be interested in an offer which gave them shares in an over-the-counter company and a promise of a currently unspecified cash distribution from the sale of Aminex assets.
But Apple chief executive Mr David McErlain said the bid was an effort to realise value from Aminex by liquidating and distributing the assets in a specific form. He said Aminex shareholders would own 50 per cent of Apple's enlarged share capital if the offer was successful. He added that Irish Takeover Panel rules meant Apple was not able to put a break-up value on Aminex.
Last August, Aminex sold its Russian assets to Lukoil for a total of €40 million net of expenses. Of this sum, Aminex said it would distribute €12.2 million to shareholders - or the equivalent of 6.9p sterling per share - and retain the balance for investment in its American and Tanzanian oil and gas interests.