(MENAFN- ProactiveInvestors) () shares advanced around 20% as the company moved closer to acquiring ().
The AIM firm’s all-paper offer which would be a reverse takeover had been deemed by MEO to be inferior to an earlier proposal from Neon Energy.
Mosman stated from the outset that it had a strong belief that the Neon offer would not go through - as Neon had an internal dispute with its shareholders.
It has now been confirmed that the Neon has terminated its proposed takeover and that termination has been acknowledged by MEO.
MEO added it now expects Mosman to proceed with its intention to make a takeover bid and the Australian company added that it will now reconsider its opinion of Mosman’s proposal.
In a statement John Barr Mosman’s executive chairman said: "The Mosman directors remain of the belief that the Mosman takeover bid affords the MEO shareholders a viable alternative."
By late morning in London Mosman shares were up 1p 12.5% trading at 9p each.
Mosman’s paper offer to MEO shareholders would see one Mosman share issued for every 20 MEO shares.
MEO a partner of AIM peer () owns a portfolio of exploration appraisal and development assets in Australia and New Zealand.
Mosman says the combination of Mosman and MEO will deliver benefits to both sets of shareholders as the merged group would be an attractive investment proposition.
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