China Bids For San Leon

AIM-listed explorer San Leon Energy said June 30 it received a conditional takeover offer the previous day from China Great United Petroleum (Holding) worth between £0.67 and £0.76/share – more than twice the closing share price June 29 of £0.30.

San Leon has a minority interest in a small onshore Nigerian producing oilfield and significant undeveloped shale and other unconventional gas exploration acreage in Europe. If the £0.76 price were used, the takeover bid could be worth an estimated £250mn.

The Chinese independent, not among China's top three oil firms, said its offer is conditional on completing final due diligence and that it expects to be in a position to make a formal offer within 45 days. This may explain why shares opened June 30 sharply but had eased to £0.385 by 9am local UK time.

“A further announcement will be made, as appropriate, in due course,” said San Leon.

It added that China Great United had signed a non-disclosure agreement on May 16 in order to discuss the San Leon’s assets and is now retaining GMP Securities as its financial advisor for the proposed takeover. 

San Leon advised that its shares might be suspended from trading until publication of its annual accounts, now planned for July 3.

Mark Smedley