17th May 2023 12:18
(Alliance News) - Egdon Resources PLC on Wednesday said it has agreed to an all-cash takeover offer from Petrichor Partners LP.
The oil and gas explorer and producer said Egdon shareholders will receive 4.5 pence per share, valuing the entire company at about GBP26.6 million. The offer price is a 96% premium to Tuesday's closing price of 2.3p per share.
Egdon shares rose 87% to GBP4.30 pence each in London on Wednesday afternoon.
The company's board said it intends to unanimously recommend the offer to shareholder's at its upcoming general meeting.
Petrichor is a wholly-owned subsidiary of Heyco Energy Group. The ultimate parent company of Heyco Energy and Petrichor is Explorers Petroleum Corp, which is controlled by George Yates.
"Heyco Group believes the timing is right to acquire Egdon and take it private, as Heyco Group believes that the public market continues to undervalue its assets, including the impressive Wressle development," Heyco said in the release.
Petrichor said its offer has been accepted by Harbour Energy PLC and Union Jack Oil PLC, London-listed oil and gas companies peers of Egdon, for their 62.7 million shares. Egdon directors also have accepted for their 14.6 million shares.
In total, shareholders representing a 14% stake in Egdon already have accepted the takeover offer.
Egdon Managing Director Mark Abbott said: "We have a high regard for Petrichor and the Heyco Group and they have been very supportive of Egdon over many years, helping us to get to the stage of profitability that we have reached today. There is a good deal of mutual respect between our groups, and we are pleased that Egdon will continue its activities in safe hands.
"After considering all strategic options and recognising the challenges, the recommended acquisition provides shareholders with an opportunity to realise a cash exit at an attractive premium."
By Harvey Dorset, Alliance News reporter
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