Acer Energy says it is unlikely to receive another takeover offer after the company's second largest shareholder agreed to sell its stake to fellow oil and gas explorer Drillsearch Energy.
On Thursday, Drillsearch said Singapore-based Republic Investment Management has accepted its revised takeover offer of 28.5 cents per Acer share and agreed to sell its 18.82 per cent holding in Acer.
That transaction, and a similar one with the Wecker Family Super Fund, meant Drillsearch had a relevant interest of more than 40 per cent in Acer.
Acer had said on Thursday it was working on a potential alternative proposal to the Drillsearch offer with rival bidders.
However, Acer said in a statement on Friday such a scenario was now not expected to eventuate.
'In light of Republic's acceptance of the revised Drillsearch offer it is unlikely that the alternative proposal in the form that was being proposed will be progressed further,' Acer said.
Acer directors advised shareholders to 'take no action' in relation to the revised Drillsearch offer until the board had determined whether the offer was in the best interests of shareholders.
Drillsearch said in a statement on Friday it had instructed its broker Wilson HTM to immediately commence purchasing Acer shares on-market at or below 28.5 cents per Acer share.
Both companies own oil assets in the western Cooper Basin in South Australia.
At 1426 AEDT, Drillsearch was down one cent at $1.505, while Acer had risen half a cent to 29 cents.