NZOG of­fer ques­tioned

Weekend Herald - - FRAN O’SULLIVAN -

New Zealand Oil & Gas in­de­pen­dent di­rec­tors have rec­om­mended share­hold­ers re­ject a par­tial takeover of­fer from ASX- listed Zeta Re­sources be­cause it un­der­val­ues the com­pany and favours cap­i­tal re­turn over in­vest­ment for growth. An in­de­pen­dent val­u­a­tion of NZOG by Nor­thing­ton Part­ners val­ues the com­pany at78c­to93c as hare, above Zeta’s 72 cof­fer, which the di­rec­tors said was in­ad­e­quate and “ap­pears to take no ac­count of ex­plo­ration up­side, which while risky, could be sig­nif­i­cant”. Zeta is seek­ing 42 per cent of NZOG’s fully and partly paid shares it does not al­ready own, sub­ject to scal­ing. Zeta, which is ad­vised by NZOG di­rec­tor Dun­can Sav­ille’s ICM unit, has lock- up agree­ments with H&G, Ber­muda Com­mer­cial Bank, Pan Pa­cific Petroleum and UIL.

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