RockRose, the independent oil and gas company, made a £26.6m offer for Independent Oil and Gas, which primarily engaged in the exploration and development of oil and gas opportunities in the UK North Sea. The offer represents a premium of 51% to the closing price of IOG on 26 February. IOG rejected the offer. RockRose argued its offer was "compelling" for IOG shareholders for a number of reasons. These include the opportunity for IOG shareholders to realise an "immediate cash upside" to their stake at a "significant premium." Also, RockRose believed it would be "challenging" for IOG to fund the £450m development capital expenditure required to develop its oil & gas fields. The Board of Directors of IOG replied that the announcement by RockRose contains a number of statements which they find misleading and with which the Board does not agree. The Board believes that this proposal is opportunistic and materially undervalues the Company and does not attribute fair value to IOG's assets, nor their significant future upside. The Board therefore unanimously concluded to reject this proposal unequivocally.