Altinex Board: At First Glance, Noreco's Offer Is Too Low

Altinex ASA has responded to Monday's disclosure by Norwegian Energy Co. AS (Noreco) that it owns 10.029% of Altinex. In addition, Altinex addressed Noreco's offer Tuesday for an additional 15% of the shares in Altinex at NOK 1.45 per share.

The board of Altinex is of the opinion that the offered price undervalues the company.

The board of Altinex has to date not received information from Noreco regarding the background for its completed share acquisition and subsequent offer to acquire shares in Altinex. Accordingly, the board of Altinex has at present no basis for evaluating Noreco`s ultimate strategic intentions and business rationale behind the completed acquisition and subsequent offer.

It is noted that the price of NOK 1.45 per share offered by Noreco is low compared to valuations published by various corporate researchers. It is uncertain whether these valuations have incorporated the results of the latest Danish Rau oil discovery.

As previously informed, Altinex is currently in the process of carrying out and completing exploration drilling programs in both Oman and the UK. The results from Oman are expected to be published within days and results from the UK within weeks. The outcome of these drilling programs could have a significant impact on the valuation of Altinex.

Tuesday's offer from Noreco for an additional 15% of the shares in Altinex is stated to be on a first-come, first-serve basis and with a short deadline. This implies that there could be very limited time available for shareholders to evaluate the offer, and that a decision would have to be made before the results of Altinex' ongoing drilling activities have been made public.

Altinex said that potential sellers in the offer from Noreco should take into account the above factors when evaluating both the pricing and timing of the offer.