White Nile says proposed Sudan deal is reverse takeover

LONDON, March 4 (AFX) — White Nile Ltd said that its proposed Sudan oil deal is classed as a reverse takeover under AIM rules and it is therefore preparing a circular to shareholders seeking their approval of the transaction.

On Feb 16, the company announced that an agreement had been concluded with the Government of South Sudan and its national oil company, Nile Petroleum Corporation Ltd whereby White Nile would acquire a 60 pct interest in the 65,700 sq km Block Ba, which contains part of the Muglad basin in South Sudan.

The company’s shares will remain suspended pending the publication of the crcular which, depending on the progress of due diligence, is expected to be posted to shareholders by the end of March 2005, Whilte Nile said.