NZOG offer questioned

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.