The directors of MEO Australia have advised shareholders in a statement issued on Monday to reject a revised takeover offer from UK-based Mosman Oil & Gas.
Mosman has revised the offer consideration to one Mosman share for every five MEO shares.
“Mosman has limited cash and its ability to continue as a going concern remains uncertain. It has only conducted a small capital raising since announcing the offer and its cash position is compounded by the estimate in its replacement bidder’s statement that it expected to spend an estimated total of $648,000 on the offer,” MEO said in the statement.
According to the statement, Mosman’s share price has been volatile throughout the offer period and the MEO Directors can have no confidence the revised offer will represent a premium or a discount to the price of MEO shares at the close of the offer.
The revised offer is “opportunistic and uncertain” and remains conditional on potential Mosman shareholder approval, the statement added.