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Ophir Energy extends deadline for Medco to launch takeover bid

Image credit : Ophir Energy

JAKARTA (RambuEnergy.com) – The Takeover Panel of Ophir Energy Plc, a U.K.-based oil and gas company, has consented to an extension of the deadline for Medco Global to either announce a firm intention to make an offer for Ophir or announce that it does not intend to make an offer for Ophir.

The deadline for the offer or not to make an offer is set at 5.00 pm on Jan. 31, 2019. This deadline may be extended further with the consent of the Takeover Panel, at Ophir’s request.

Medco Global is a wholly owned subsidiary of PT Medco Energi Internasional Tbk (IDX:MEDC).

The announcement came as a surprise because Ophir Energy on Jan. 14 said that it has rejected the possible offer for Ophir’s shares by Indonesia’s energy company PT Medco Energi Global PTE Ltd (Medco Global).

The company has met formally to consider the possible offer announced by Medco on Jan. 11, 2019 to acquire the issued and to be issued share capital of Ophir at an offer price of 48.5 pence per Ophir ordinary share. “The Board has unanimously rejected the proposal as it undervalues Ophir,” Ophir said in a statement Monday (Jan. 14).

The two parties are now back on the negotiation table. The two parties are in advanced negotiations with a view to agreeing a recommended transaction at 55 pence per Ophir ordinary share in cash, Ophir said in a statement.

This announcement is being made with the agreement of Medco and Medco Global.

Although discussions between Ophir and Medco are ongoing, this announcement does not amount to a firm intention to make an offer under Rule 2.7 of the Code and there can be no certainty that a firm offer will be made, Ophir said.

Medco has reserved the right to reduce this possible offer price by the amount of any dividend (or other distribution) which is subsequently paid or becomes payable by Ophir to its shareholders. (*)

Written by Staff Writer

Edited by Roffie Kurniawan (email: roffie.kurniawan@gmail.com)

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