By Nkiruka Nnorom

Seplat Petroleum Development Company Plc has said that there is no certainty of a business combination with Afren Plc.

The company stated this in a notice filed with the Nigerian Stock Exchange, NSE, yesterday.

This followed an earlier indication of interests communicated to the investing public last month by Afren Plc of a take-over bid by Seplat Plc.

Though Seplat confirmed that it had made a highly preliminary approach regarding a possible combination with Afren, it however, noted that there can be ‘no certainty that an offer will be made or as to the terms of any offer. ‘

The company stated that “in accordance with Rule 2.6(a) of the UK City Code on Takeovers and Mergers (the “Code”), by no later than 5.00 pm on 19 January 2015, it must either announce a firm intention to make an offer under Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

“Seplat notes that this deadline can be extended with the consent of the UK Takeover Panel (the “Panel”) in accordance with Rule 2.6(c) of the Code.

Seplat, noted that further details cannot be provided at this stage due to the highly preliminary status of events, but assured that further announcements will be made as soon as the need arises.

It would be recalled that investors had swooped on the shares of Afren Plc following the announcement by the company in December of a possible take-over bid by Seplat Plc.

Afren had stated that it had received a “highly preliminary” approach from Nigerian oil and gas company, Seplat Petroleum Development Company plc, regarding a possible combination with it.

However, Afren has said that there can be no certainty that an offer will be made or as to the terms of any offer.

Available information had shown that Seplat has acquired just over seven percent of Afren since September last year.

However, even though Seplat has approached Afren, Afren’s press release on the matter, made it quite clear that: There can be no certainty that an offer will be made or as to the terms of any offer.

So there’s no indication of how much Seplat will offer for Afren. Additionally, as of now there has been no comment on whether Afren’s shareholders will be offered cash or stock for their holdings.