PPP Informs Shareholders to Take No Action on Zeta Energy's Takeover Offer
Australia's Pan Pacific Petroleum NL (PPP) referred Monday to an on-market offer received April 10 from Zeta Energy Pte Ltd., a wholly owned subsidiary of Zeta Resources Limited (Zeta Resources), to acquire all the fully paid ordinary shares in PPP that it does not already own at an offer price of $0.0384 (AUD 0.05) per share (Offer).
The PPP Board have reviewed Zeta Energy's Bidder Statement and, other than Peter Sullivan who is also chairman of Zeta Resources, the parent company of Zeta Energy, is in the process of preparing a considered response to the Offer which will be set out in the Target's Statement to be distributed to PPP shareholders by April 24. The Target's Statement will include the PPP Board's formal recommendation and details regarding the reasons for the recommendation and other information that may be relevant to your assessment of whether to accept or reject the Offer.
RSM Bird Cameron has been engaged to prepare an Independent Expert's Report for PPP shareholders in relation to whether the Offer, in RSM Bird Cameron's opinion, is fair and reasonable. Maddocks has been appointed as PPP's legal advisers.
Based on information currently on hand, the PPP directors (other than Peter Sullivan) recommend that PPP shareholders should take no action prior to receiving the Target's Statement.
In the meantime, PPP shareholders are reminded of the following terms, as previously disclosed to ASX:
- Pateke-4H has only just been successfully tied back to the Tui FPSO and brought on production. This was a significant milestone for the Tui Area Fields. However, the final estimate of additional Tui reserves attributable to Pateke-4H is subject to production history data and will not be known until later in the year. PPP has 15 percent interest in the Tui Area Fields
- Work regarding optimization of the oil development and the potential commercialization of the CRD oil and gas discovery in Block 07/03 PSC in Vietnam is still ongoing, and it is planned to complete the Field Development Plan around mid-year. This will form the basis for a final investment decision by the joint venture partners (FID), subject to the requisite approvals of the Vietnam Government
- The joint venture partners are currently considering a Declaration of Commerciality for CRD which would trigger a "back-in" option for PetroVietnam which, if exercised, would reduce PPP's participating interest from 5 percent to 4.25 percent
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- PPP Drops Plans to Sell Stakes in NZ's Tui Oil and Vietnam's CRD Projects (May 29)
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