RockRose Energy has withdrawn its £52.5 million offer to buy the debt of takeover target Independent Oil and Gas (IOG).
The company submitted the debt offer after having a £26.6m acquisition proposal rejected by IOG’s board at the start of March.
IOG accused RockRose of significantly undervaluing the company.
This morning, IOG revealed plans to raise £16.6m through a share placing and restructure its loan arrangements with its main lender, London Oil and Gas, which is in administration.
The funds will go towards the development of IOG’s southern North Sea fields.
RockRose said it “failed to understand” how the fundraiser, alteration of debt terms and the rejection of its offers were in the best interest of IOG shareholders.
IOG shares fell by about 30% to 11.50p in London yesterday.
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