30th Jan 2019 08:38
LONDON (Alliance News) - Ophir Energy PLC and PT Medco Energy Internasional Tbk have reached an agreement over a takeover, the latter said on Wednesday.
Indonesian firm PT Medco will be paying 55 pence per share in cash to Ophir's shareholders, valuing the company at approximately GBP390.6 million.
This is a 66% premium to Ophir's closing price on December 28, the last business day before a possible offer was announced.
Ophir shares were 6.3% higher early on Wednesday at a price of 53.80p.
Ophir Chair Bill Schrader said: "We are pleased to announce a recommended transaction with Medco. The transaction delivers upfront value in cash to Ophir shareholders for the strategy the Ophir directors set out in September 2018.
"The Ophir board believes the Medco offer reflects the future prospects of Ophir's high-quality assets, as reflected in the premium of 66% to the closing price of 33.20p per Ophir share on December 28. Consequently, the Ophir board intends to recommend unanimously the transaction to Ophir shareholders."
Earlier in January, Ophir had pushed back a 48.5p proposal, having already rejected tentative proposals before that of 58p and then 53.8p.
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