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88 Energy extends deadline for XCD Energy takeover offer

Acceptances increased to 79% in the past week, from 37% a week ago, and the company aims to secure at least 90% so that it can take the rest by compulsory purchase.

88 Energy Ltd - 88 Energy extends deadline for XCD Energy takeover offer

88 Energy Ltd (LON:88E) has extended the deadline before closing its takeover offer for Alaska exploration peer XCD Energy, to 7pm (Sydney time) on July 13 2020.

The Alaska explorer in May offered 2.4 new 88 Energy shares for every 1 XCD share, and 0.7 88 Energy shares for every listed XCD share option. This is the best and final offer, and will not be increased, it has said.

It comes as 88 Energy nominees are appointed to a restructured XCD board.

Acceptances now amounted to 79.84% of XCD shares and 79.22% of listed share options, the AIM-quoted company said in a statement.

It noted that the offer has been recommended by XCD’s board - and board members previously accepted the offer in respect of their own shareholdings – and a week ago the offer became unconditional.

88 Energy repeated that it intends to move to compulsory purchase should acceptances reach 90% or more.

It also cautioned:  “if remaining XCD Energy shareholders and listed options do not accept the offers, and 88 Energy does not reach compulsory acquisition thresholds by the closing date of the offers, they will remain a minority shareholder in XCD Energy with reduced influence in the running of the business.

“Further, 88 Energy’s controlling position may affect the liquidity of the minority holders of securities in XCD Energy. This may increase the difficulty for minority securityholders to sell their XCD Energy shares or listed options at an attractive price.”

88 Energy noted that XCD will be delisted from the ASX market, if it does not complete the acquisition of the company.

Quick facts: 88 Energy Ltd

Price: 0.555 GBX

Market: AIM
Market Cap: £59.17 m

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