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LONDON - Wildcat Petroleum Plc (LSE:WCAT) has terminated its proposed acquisition of Sudan-based Wildcat Gold & Mining Trading & Multi Activities Company Ltd (WGMT) due to escalating security risks, the company announced Tuesday.
The termination comes just weeks after Wildcat signed a Memorandum of Understanding on September 1 outlining terms to acquire WGMT’s entire issued share capital. According to the company’s press release, while the target assets were initially considered to be in relatively safe government-controlled areas of Sudan, the security situation has deteriorated.
The company cited the emergence of rebel forces using "long-range drones which have the capability to be programmed to hit specific targets with pinpoint accuracy" as the primary reason for abandoning the deal. Wildcat’s advisors in Sudan recommended suspending operations until the drone threat is eliminated or countermeasures can be deployed.
The board of directors determined that as a UK company, Wildcat "could be a prime target" and decided to terminate all discussions with immediate effect.
Following the termination announcement, Wildcat has applied to have the suspension on its listing lifted. The company expects trading of its shares on the Official List of the London Stock Exchange to resume Tuesday.
Sudan has experienced civil conflict for several years, creating a challenging environment for international business operations.
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