15th Nov 2019 08:36
(Alliance News) - Amerisur Resources PLC on Friday said it has agreed a GBP242 million, or 19.21 pence per share, cash takeover offer from Latin America-focused oil & gas company GeoPark Ltd.
Shares in Colombia-focused Amerisur were up 4.7% at 18.84p each on Friday morning, valuing the company at GBP227.8 million. Shares on Thursday closed at 18.0p each.
Amerisur Chief Executive John Wardle said: "The transaction presents a significant opportunity for our stakeholders in Colombia and, given GeoPark's existing presence, will ensure the continuity of our partnerships in country."
Cardiff-based Amerisur has agreed the buyout from GeoPark unit GeoPark Colombia SAS. The transaction follows a strategic review, including a formal sales process, announced by Amerisur in July.
Amerisur said its directors intend to unanimously recommend the GeoPark offer to shareholders and consider the financial terms to be fair and reasonable.
Amerisur Chair Giles Clarke said: "The cash offer from GeoPark Colombia of 19.21p per share represents a premium of almost 60% to Amerisur's share price prior to the formal sale process and is an attractive proposition for Amerisur and its shareholders, particularly when compared to recent public markets acquisitions in the sector.
"The market for Amerisur has been fully tested and the board is unanimously recommending this condition light offer to shareholders."
GeoPark has received irrevocable undertakings to vote in favour of the offer in respect of 289 million Amerisur shares, representing around 24% of the existing share capital of Amerisur.
By Tapan Panchal; [email protected]
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