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Heritage suspends trading on LSE

By Agencies

It appears that Heritage Oil Ltd. is the subject of a takeover once again. According to a recent release issued by the company it is in preliminary discussions with a third party regarding a possible merger which would be treated as a reverse takeover under the Listing Rules of the UK Listing Authority if completed.

While no firm agreement has been reached at this point Heritage has suspended trading of its shares on the London Stock Exchange.

Heritage said that in the release that in accordance with Rule 2.10 of the Takeover Code (the ‘Code’), it confirms that, as at 31 May 2009, it has 257,062,088 ordinary shares and 3,024,108 exchangeable shares of no par value in issue and admitted to trading on the London Stock Exchange under the UK ISIN code JE00B2Q4TN56 and CA4269283053.

This is not the first time Heritage as been courted for possible takeover; in September 2008 the company confirmed reports that it was in unsolicited talks regarding the sale of some assets, adding that the talks were highly preliminary. Heritage did not say which assets were under discussion, but did indicate that the negotiations could possibly lead to an offer for the company. The talks however were terminated just a short time later. The company, at that time, said that it believed the best way to create shareholder value was through active, high-impact drilling programs, like its drilling program in Uganda.

Heritage also holds assets in Tanzania, Mali, and Kurdistan.

Heritage shares have more than tripled in value since February, after it announced a large oil discovery in Uganda with partner Tullow Oil (TLW.L) and later another big find in Iraq.

Credit Suisse analysts said in May that Heritage would be a logical purchase for one of the Chinese state oil companies which in recent years have been snapping up energy assets across the globe to fuel China’s economy.

Heritage held abortive talks last September with an unidentified third party over the sale of some assets.

From Petroleum Africa

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