Skye Investments, which owns a 19.2% stake in Petroceltic International, has said it will not accept an offer from Sunny Hills for the oil exploration company.
Skye Investments, which is headed by Petroceltic chairman Robert Adair, said the offer from Sunny Hill, which is owned by Petroceltic's biggest shareholder Worldview Economic Fund, undervalued the company.
"The company announces its firm intention not to accept the offer which it regards as substantially undervaluing Petroceltic and will not consider any further offers unless significantly increased," a statement from Skye said today.
Sunny Hill made the offer for Petroceltic last month. The offer had valued the share capital of Petroceltic at about £6.42m or about 3 pence per share.
Petroceltic said yesterday that it had considered the offer and had consulted with a number of stakeholders, including its lenders.
It said it believed the offer undervalued the company and told shareholders to take no action at this time in relation to the offer from Sunny Hill.
The deal needs the agreement of 90% of shareholders.
Worldview, which owns 29% of Petroceltic, has been involved in a dispute with the company's board for over a year.
