3rd Nov 2014 08:16
LONDON (Alliance News) - Ophir Energy PLC on Monday confirmed it is in talks with Salamander Energy PLC about a possible all-share takeover deal for the South-Asia exploration and production company after an initial approach last month.
Ophir said the combined company would have a strong balance sheet, with operations in both Africa and South East Asia, and would be well-placed to strengthen exploration of Salamander's BlockG4/50 in Thailand and other Ophir assets in Myanmar and Indonesia. A combined company would have production, development and exploration exposure to 21 blocks in South East Asia, Ophir said.
Ophir said it expects to remain an upstream exploration company and plans to reinvest cashflow from Salamander's current production to develop the combined business with a focus on exploration.
Ophir said an offer might not be made and the terms of any offer could change, if one were made. It also reserved the right to introduce other forms of consideration or vary the mix of consideration of any offer.
Ophir was advised by Credit Suisse, Morgan Stanley and RBS Capital Markets.
By Ian Edmondson
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