Afren shares surge as Seplat builds war chest for acquisitions

The share price of FTSE 250 oil group Afren, which plummeted earlier in the week, soared late on Thursday after potential bidder Seplat secured the option to raise $700m of debt to fund acquisitions.

Nigerian group Seplat Petroleum Development Co had approached Afren in December about a "possible combination" and has until 19 January to make a bid or walk away.

The Lagos-based group said on Thursday that it had refinanced with $1bn of new facilities and has an option to increase the facility by up to $700m for "qualifying acquisition opportunities".

Investors were hoping that Seplat will now return to the table before the Monday deadline at 17:00.

Afren's shares finished the session up 32.3% at 28.76p.

The stock had dropped sharply on Monday after the group said reserve estimates for its part-owned Barda Rash field in the Kurdistan region of Iraq were revised sharply lower.