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Lochard investors reject Parkmead offer

By BFN News | 12:08 PM | Thursday 30 May, 2013

A shareholder group from Cornhill Capital has indicated that it will reject Parkmead Group's (PMG) Offer For Lochard Energy (LHD).. The investors involved account for 20.37% of the outstanding shares in Lochard Energy (LHD) and are not intending to accept the offer of 0.385 PMG shares for one LHD share. Whilst the consortium fully agrees that the company needs to be run by an experienced and proven operator, the company has been consistently revenue generative from its 10% stake in The Athena field. This revenue has enabled it to pay down its Senergy settlement in full and the majority of its outstanding Gemini loan arrangement, to the extent that repayments to Gemini should now be at 20% of gross revenues, further increasing LHD's cash position and making it a profitable entity. As such the group believes that the offer materially undervalues the company. At 12:08pm: (LON:LHD) share price was -0.25p at 4.5p (LON:PMG) PC Medics Group share price was +0.13p at 12.5p Story provided by

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