Royal Dutch Shell has extended its offer for AIM-listed oil and gas producer Cove Energy by a further two weeks and urged Cove shareholders who have not yet accepted to do so.
Shell's £1.12bn offer for Cove has already been extended on two separate occasions after Thai firm PTT Exploration and Production (PTTEP) trumped its 220p-a-share offer with its own bid of 240p a share, valuing the company at £1.22bn. Despite having already recommended Shell's offer to its shareholders, Cove's management unsurprisingly decided to then back the offer by PTTEP which was 9.1% higher.
Shell, which has stuck with its 220p-a-share offer, said that it had received valid acceptances of the offer in respect of around 3.46% of Cove's existing share capital.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
PTTEP itself announced on Monday that it had extended its own offer from June 22nd to July 6th after receiving acceptances from Cove shareholders in respect of 0.25% of its existing share capital.
"Shell's decision to announce a recommended Offer for Cove fits with Shell's strategic aim to drive forward with its investment programme to deliver sustainable and profitable growth," Shell said in April at the time of the first offer.
"The proposed acquisition of Cove's portfolio would mark Shell's entry into exciting new hydrocarbon provinces, in Mozambique and Kenya, with significant potential for new LNG from recent gas discoveries offshore Mozambique, and further complementary exploration positions in East Africa."
BC
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the USMedium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
