San Leon shares up 12% on approach

Shares in Dublin-based exploration firm, San Leon Energy jumped more than 12%, at one point, yesterday on the back of the company confirming it had been approached with a potential takeover offer.

The company’s brief announcement, made yesterday morning, followed a media report at the weekend which suggested San Leon had become a takeover target, with a minimum bid of almost €70m expected within the week.

San Leon’s management said, yesterday, that its statement doesn’t constitute a firm intention to make an offer, on behalf of the interested party, adding “there can be no certainty that an offer will be made or as to the terms on which any offer might be made.”

“The board of San Leon confirms that it has received an approach from a possible offeror, that may or may not lead to an offer being made for San Leon,” the statement said.

The company is headed up by former telecoms entrepreneur, Oisin Fanning and is mainly focused on Poland; although it has interests elsewhere in Europe and northern Africa; as well as a net profit interest in the highly-rated Barryroe field off the coast of Cork, currently controlled by Tony O’Reilly jr’s Providence Resources.

San Leon, which counts British investor, Martin Hughes as a near 42% stakeholder, recently scaled back its Polish interests, but said it remains committed to its assets there.

The weekend media report quoted one source as suggesting a successful bid would need to be above £1 per share. Its shares closed at around 60p, in London yesterday, up by just over 10% on Friday’s close.