Parkmead puts in offer to buy Lochard

Oil and gas company Parkmead has placed an offer to purchase the entire issued share capital of Lochard.

Oil and gas company Parkmead has placed an offer to purchase the entire issued share capital of Lochard.

The acquisition of the independent oil and gas production, appraisal and development firm is currently valued at £14.5m and each share worth 4.9p.

Parkmead said Lochard directors were pleased with the terms of the proposed acquisition and will recommend shareholders vote in favour of a transaction at a general meeting.

Advertisement - Article continues below

The news follows Lochard's announcement last September that is has decided to process with a formal sale of the business.

"Since the current board was formed, the Lochard Directors have believed that the future of Lochard would be best served by becoming part of a larger entity," said Lochard Chairman, Cliver Carver in a statement Thursday.

"We are therefore delighted to have found in Parkmead a company whose management team have a successful track-record of building an E&P company and creating value for shareholders."

Tom Cross, Executive Chairman of Parkmead, said buying Lochard will increase production by more than 400%.

He said the combination of Parkmead and Lochard will create a "stronger and more diverse portfolio of assets, balanced across the UK Continental Shelf and the Netherlands".

Parkmead's shares fell 4.95% to 12p at 12:15.




Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Industrial metals

Governments’ money-printing mania bodes well for base metals

Money is being printed like there is no tomorrow. Much of it will be used to pay for infrastructure projects – and that will be good for metals, says …
27 May 2020
EU Economy

Here’s why investors should care about the EU’s plan to tackle Covid-19

The EU's €750bn rescue package makes a break-up of the eurozone much less likely. John Stepek explains why the scheme is such a big deal, and what it …
28 May 2020

In support of active fund management

We’re fans of passive investing here at MoneyWeek. But active fund management has its place too, says Merryn Somerset Webb.
25 May 2020