Shares in Nexus Energy have slumped to their lowest level in more than a decade after Seven Group Holdings refused to lift its $26.6 million takeover offer for the struggling oil and gas company.
Billionaire Kerry Stokes' industrial services and media group offered two cents a share for the debt laden Nexus in late March.
An independent expert's report found the offer to be "fair and reasonable", and Nexus directors have urged shareholders to vote in favour of the offer.
Seven on Thursday said it would not be increasing its offer in light of the expert's report.
"Seven Group Holdings today confirmed that its offer to acquire all issued shares in Nexus Energy via a scheme of arrangement would not be increased, in the absence of an alternative offer," Seven said.
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Shares in Nexus Energy dropped 3.9 cents, or 66 per cent, to two cents, their lowest price since February 2003.
Seven Group shares added three cents to $8.23.
Nexus has offshore exploration and production assets in the Gippsland Basin, off the south-east coast of Victoria, and the Browse Basin off the north-west coast of Western Australia.
Seven plans to replace Nexus Energy's debt, and provide funding for its continuing operations.
Nexus has been facing impending debt milestones, which Seven Group said it would be unable to meet without the takeover proposal.
