Thai oil firm PT Exploration and Production Public (PTTEP) has trumped Royal Dutch Shell's bid for AIM-listed Cove Energy, with PTTEP and Cove now agreeing on the terms of a recommended cash offer of 240p per share.
The new offer, which values Cove at £1,221.4m, represents a 9.1% premium to the 220p-a-share offer from Shell which Cove had previously recommended.
It is also 155.3% higher than Cove's closing price of 94p on December 12th, the last business day before the company revealed that certain parties had expressed an interest.
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Cove said that offshore East Africa and the Rovuma basin contain "world scale natural gas resources" with significant potential, representing a "strong fit for PTTEP".
The directors of Cove are said to unanimously recommend that Cove shareholders accept or procure acceptance of PTTEP's offer. "Accordingly, the directors of Cove confirm that they have withdrawn their recommendation of the Shell Offer," the firm said.
""The bid from PTTEP representssignificant value for shareholders and confirms the world class nature of Cove's East African assets," said Cove's Chief Executive Officer (CEO) John Craven.
Cove's shares were trading 10.49% higher at 247.5p in early trading on Wednesday morning.
"We are delighted to have announced a recommended offer to acquire Cove and all its assets. This acquisition illustrates our commitment to leveraging the LNG value chain of the PTT Group and is consistent with our long-term strategic priorities," said PTTEP CEO Tevin Vongvanich.
BC
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