Jacka Resources says it hasn't given up hopes of a potential friendly takeover by Tangiers Petroleum, despite terminating a bid implementation agreement for the deal.
Jacka told the market late yesterday it had exercised its right to terminate the bid agreement in order to pursue alternative transactions to address its "urgent" short-term funding requirements.
Tangiers had emerged as a potential saviour for Jacka when it announced a friendly off-market takeover bid for the oil and gas explorer in December, valuing the company at $37 million.
The takeover appeared to be in doubt, however, when Tangiers announced the resignation last week of its executive chairman Eve Howell and non-executive director Max de Vietri, citing the loss of support of several major shareholders.
This prompted Jacka to terminate the bid agreement, saying Tangiers' intentions in regards to the bid were unclear following the resignations.
However Jacka said today that the takeover offer remained open, claiming the decision to terminate the agreement "should not be construed as an attempt to frustrate the Tangiers offer".
It recommended to its shareholders and option-holders that they take no action in relation to the offer until further information becomes available on Tangiers' intentions to pursue the offer.
Tangiers is yet to appoint new directors to replace Ms Howell and Mr de Vietri, leaving Brent Villemarette as the company's sole director.
Upon completing the proposed transaction, existing shareholders in Tangiers would own 53 per cent of the company, with Jacka shareholders owning the remaining 47 per cent.
Ms Howell was to remain chairman of Tangiers, while Jacka managing director Bob Cassie was to become managing director of the combined entity.
The takeover bid is scheduled to close on 18 March.
