One takeover at a time is not enough for Zeta Resources

Mining investor Zeta Resources is in the process of acquiring two different companies.

One deal is going smoothly, the other is getting competitive.

Zeta (ASX:ZER) is taking over Pan Pacific Petroleum (ASX:PPP) via scheme of arrangement, with an offer unveiled in June for 3.8c a share or one Zeta share for every 10 of the target.

The other target is New Zealand Oil & Gas (NZOG). Zeta launched a bid in August and is now competing with OG Oil and Gas for control of the company.

Zeta offered 72c a share for the 42 per cent of NZOG it didn’t already own, but was trumped last week when OG swooped in with a 77c a share offer.

NZOG became particularly enticing after selling its main producing fields in New Zealand, Tui and Kupe, which reaped a combined $153 million. The sale left the company cash-rich and shareholders potentially looking at a managed wind down.

Zeta is a listed resources investor, and the links between its targets and investments are myriad.

It told the market in October last year that its manager ICM owned almost half of ASX-listed Cue Resources. NZOG had launched a hostile takeover of Cue in 2015, but only took control in January this year.

Analysts are theorising that Zeta could be mulling a combined NZOG-Pan Pacific-Cue venture.

At Pan Pacific, chairman Peter Sullivan abstained from voting on the scheme of arrangement because he is also a director on the Zeta board.

And director Martin Botha runs Resolute Mining, Zeta’s largest portfolio company.

Zeta also owns 87 per cent of Bligh Resources, after a buying spree between February and July, and in January it gained control over 66 per cent of Horizon Gold.