Regal Petroleum details Heamoor/Geo-Alliance offer

Heamoor Limited and Geo-Alliance, both controlled by Ukrainian businessman Viktor Pinchuk, are in discussions with the board on an alternative offer to acquire Regal Petroleum (LSE: RPT LN) at 25 pence per share, the latter said in an RNS update yesterday. The Heamoor/Geo-Alliance offer represents a reverse takeover where Regal would first issue additional capital and then acquire 100% of Geo-Alliance’s shares in exchange for 70% of its own capital. Regal’s current shareholders would receive an option to sell their shares at 25 pence no earlier than April 2011. This offer estimates Regal’s total value at USD 127 mln. Another offer to acquire Regal came from Smart Holding, which said it would buy 100% of Regal’s shares immediately at 24 pence each, valuing the company at USD 122 mln.