THE BOARD of Pan Pacific Petroleum has advised shareholders to reject an unsolicited takeover offer from minority shareholder Zeta Energy.

Singapore-based Zeta, a subsidiary of Australian Securites Exchange listed Zeta Resources, valued Pan Pacific at about $29.4 million in its offer, which the takeover target said was neither fair nor reasonable.

The offer of five cents a share was an on-market unconditional cash takeover offer.

Zeta Resources said given Pan Pacific’s substantial losses and the current uncertain economic and commodity outlook, a cash offer at a premium to market was expected to be attractive to a number of investors.

According to Zeta Resources Pan Pacific suffered a loss of $29.46 million for the financial year ended 30 June 2014 and a further loss of $19.75 million for the six months to 31 December 2014.

Zeta Energy owns a 16.8 per cent interest in Pan Pacific’s issued shares.