Mytrah Energy Agrees To GBP79 Million Cash Offer From Raksha Energy

4th Apr 2018 12:37

LONDON (Alliance News) - Mytrah Energy Ltd said Wednesday that it has agreed to a GBP78.9 million cash acquisition offer from Raksha Energy Holdings Ltd.

Shares in Mytrah Energy were trading 58% higher at 43.50 pence on Wednesday afternoon.

Under the terms of the offer, Mytrah Energy shareholders will receive 45 pence in cash for each share. Raksha Energy currently holds around 58% stake in Mytrah Energy.

The offer represents a premium of 63.6% to the closing price of 27.5 pence per Mytrah Energy share on Tuesday, the last business day before the date of this announcement and 52.5% to the average closing price since January 4 of 29.5 pence per share, being the three-month period before the date of this announcement.

"We continue to believe in MEL's potential and believe this offer provides an attractive and certain value for the current MEL independent shareholders", Kathryn Tully of REHL said.

"This offer enables MEL shareholders to realise value today in cash for their shares at a significant premium to the recent historical share price, which, in the Independent MEL Directors' view, has been negatively impacted by sentiment towards the Indian economy and the power and infrastructure sector in particular, as well as by the Company's capital and ownership structure. We believe that, in these circumstances, the Offer is an acceptable outcome for all MEL stakeholders," Mytrah Energy's Senior Independent Director Russell Walls said.