15th Oct 2018 14:06
LONDON (Alliance News) - Riverstone Energy Ltd said Monday it has commenced a tender offer for up to GBP55.0 million worth of shares at a price between 1,200 pence and 1,375p per share.
Shares in the energy investor were up 0.8% at 1,262p per share in afternoon trade.
The final price will be determined based on the tenders received and the offer is to be funded through its existing cash balances. Should the offer be accepted in full, the company will have cash balances of USD140 million.
At the minimum price per share, 4.6 million shares will be repurchased, or around 5.4% of Riverstone's issued capital. At the maximum tender price, 4.0 million shares will be repurchased, equivalent to 4.7% of shares.
"The recent strength in oil prices, driven by increased concerns regarding availability of supply, provides an attractive environment for the company's investment manager to generate value from its current portfolio," said Riverstone.
"The company intends to deploy the remainder of its cash balance following completion of the tender offer towards attractive opportunities within the existing portfolio and one or more new energy investments which the investment manager is currently progressing," the investor added.
Related Shares:
Riverstone Energy