Ophir board rejects proposed Medco offer

Ophir Energy has rejected a possible takeover offer by PT Medco Energi Global as the board feels it undervalues the company's shares.

Ophir's board met formally over the weekend to consider the Indonesian group's possible offer that was announced on Friday, with a proposal to offer 48.5p per share in cash.

The boards of the two companies have engaged in talks about the possible cash offer, the pair said on Friday.

"The board has unanimously rejected the proposal as it undervalues Ophir," the company said in a statement on Monday.

Ophir's shares have fallen more than 90% since topping 500p in late 2012.

On Tuesday, Ophir is scheduled to provide an update on its trading and operations for calendar 2018.