Bentley sticks to Molopo amid mystery offer

The Farooq Khan-led Bentley Capital has revealed that it received an $8.4 million offer from a mystery bidder for its stake in the ASX-listed cash shell Molopo Energy.

Bentley, which also has an Australian listing, said it received a 25 cent per share offer for its 33.7 million shares in Molopo from an undisclosed bidder.

Bentley’s stake in Molopo equates to 13.6 per cent of the latter’s issued capital.

However Bentley said that, after receiving a draft of the agreement, the parties did not reach a formal contract by the specified time and that an “agreed standstill period”, during which Bentley could not buy or sell Molopo shares, had expired.

Subiaco-based Bentley said that it intended to acquire more shares in Molopo following the lapse of the standstill period.

Molopo shares were trading for about 16 cents prior to the announcement but closed today more than 18 per cent higher at 19 cents each.

Over the past year, Molopo has sold its oil and gas assets in South Africa, Saskatchewan and Texas and changed its strategy to focus on acquisitions in western Canada of up to $50 million.

At the end of March, the company had no bank debt and $US61 million in cash.

Mr Khan is executive chairman of Bentley and also holds the same role at Queste Communications and Orion Equities.