Buru Energy in halt on takeover proposal

Shares in Perth-based explorer Buru Energy have been placed in a trading halt amid speculation that a $41 million cash takeover proposal by its chairman, using the company's cash reserves, may be dropped.

The company said it expects to make an announcement in relation to its proposed acquisition by Arenite Pty Ltd, linked to chairman Eric Streitberg, by Thursday.

In April, Mr Streitberg proposed to turn Buru into a private company and was offering 25 cents cash for each Buru share, valuing the offer at $40.5 million.

However no official documents outlining the takeover proposal have been released so far, with the timetable pushed back due to certain regulatory matters and contractual arrangements, Buru said last month.

Buru, which holds a suite of assets in the Canning Basin, has a $40 million commitment to Alcoa over the next five years and a $138 million minimum spend on its Western Australian tenements.

The company had intended to release the schemes booklet by the end of May and now anticipates the release to be in the latter half of June.

A shareholders meeting to approve the acquisition is anticipated to be held in mid to late July.

Shares in Buru last traded at 22.5 cents.