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- 88 Energy (88E) has announced an off-market takeover offer for Alaskan oil exploration company XCD Energy (XCD)
- Under the offer, XCD shareholders will receive 1.67 88 Energy shares for every XCD share held and 0.5 88 Energy shares for every XCD Energy option held
- That offer represents a 100 per cent premium on XCD shares, based on their close price of 0.5 cents per share on Friday
- As the offer was only submitted right before the weekend, XCD is still considering the deal
- In the meantime, XCD has told its shareholders to take no action until the board and directors have given their response
- On the market this morning, 88 Energy is up 10 per cent, trading for 0.6 cents per share, while XCD is up 60 per cent and is selling shares for 0.8 cents each
88 Energy (88E) has announced an off-market takeover offer for Alaskan oil exploration company XCD Energy (XCD).
Under the offer, XCD shareholders will receive 1.67 88 Energy shares for every XCD share held and 0.5 88 Energy shares for every XCD Energy listed option held.
That offer represents a 100 per cent premium on XCD shares, based on their close price of 0.5 cents per share on Friday.
88 Energy is an Australian-based oil and gas company, which has operations on the north slope of Alaska, where XCD Energy owns 195,373 acres.
The companies talked over the weekend about the deal, however, the short timeframe prevented a bid of implementation deed. 88 Energy said it is still in discussions with XCD to anticipate an agreement.
XCD’s Response
Shortly after the offer was announced, XCD announced its response to the unsolicited offer.
The company said it is carefully considering the offer, as the XCD board has not had the opportunity to fully go through the details.
Because of this, XCD has told its shareholders to take no action and wait for the board’s response.
On the market this morning, 88 Energy is up 10 per cent, trading for 0.6¢ per share, while XCD is up 60 per cent and is selling shares for 0.8¢ each.
