18th Jan 2022 15:52
(Alliance News) - Morocco-focused Sound Energy PLC's latest bid to acquire Angus Energy PLC offers a "healthy premium", though the UK-focused oil and gas company has so far held firm.
Angus Energy has recently kicked off a formal sales process. Earlier in January, it revealed a strategic review as its market capitalisation did not truly reflect its value, the company said. It's "valuation mismatch" that other smaller energy companies also experience, Angus added.
Sound Energy on Tuesday said it has made a GBP21.6 million proposal, its fourth tilt at acquiring Angus.
The offer comprises of 0.680 of Sound stock for each Angus share. Based on Sound's 2.20 pence closing price on Monday, the offer values each Angus share at 1.50p, valuing Angus Energy's equity at GBP21.6 million.
Sound Energy shares were 4.1% lower at 2.11p each in London on Tuesday afternoon. Angus was up 6.9% at 1.21p, giving it a market capitalisation of GBP13.2 million.
Sound on Tuesday said it made previous offers of 1.00 pence per Angus share, 1.30p and 1.40p. Two were made in December and one was made in January. All three were rejected.
On the latest proposal, analysts at SP Angel Oil & Gas commented: "The offer appears to be fair in our view, valuing Angus at a healthy premium to its current valuation. Nevertheless, the proposal now looks to be heading hostile with Angus holding firm, but as ever, it will be the shareholders that will decide the future of this deal."
Angus on Tuesday said it invited Sound to "execute" a non-disclosure agreement, along with other interested parties.
This would give all suitors access to all information needed to perform "proper due diligence on an equal footing".
Angus Chief Executive George Lucan affirmed: "We will proceed with our formal sales process, without preference to any party and with confidentiality afforded to those parties who wish to enjoy it, as previously advised to the market and in order to secure the maximum value for our shareholders."
Angus on Monday had said it has received "at least six bona fide" approaches.
By Eric Cunha; [email protected]
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