Ophir Energy Plc said Jan. 14 that it has rejected Indonesian oil and gas group Medco Energi Internasional Tbk PT's potential takeover offer, saying it "undervalues" the British energy company.
Medco, which had made an unsolicited approach to buy Ophir in October last year, said Jan. 11 it could offer 340 million pounds (US$437 million) in cash for London-listed Ophir, which has assets in south-east Asia.
Medco has made several overtures for Ophir. The Indonesian company's offer of 48.5 pence per Ophir share is significantly lower than its initial offer of 58 pence per share, having already reduced it to 53.8 pence in December.
Ophir, which is set to provide a 12-month trading update on Jan. 15, said its board considered Medco's latest offer and unanimously took the decision to reject it, without giving further details.
"Don't now sell this business for less than it is worth—or possibly, if a firm bid is made that isn't high enough, don't sell this business at all," Stifel analysts said in a note, adding that it is also "urging" Ophir to lay out its vision for the company.
Under British takeover rules, Medco's fully-owned unit PT Medco Energi Global has until Jan. 28 to make a firm offer or walk away.
Ophir's shares lost nearly half of their value last year as it failed to find financing for a liquefied natural gas project in Africa's Equatorial Guinea. The company expects to write down $300 million on the project and also shift its headquarters from London to Asia, where it bought assets in 2018. (US$1 = 0.7780 pounds)
Recommended Reading
TC Energy’s Keystone Back Online After Temporary Service Halt
2024-03-10 - As Canada’s pipeline network runs full, producers are anxious for the Trans Mountain Expansion to come online.
Post $7.1B Crestwood Deal, Energy Transfer ‘Ready to Roll’ on M&A—CEO
2024-02-15 - Energy Transfer co-CEO Tom Long said the company is continuing to evaluate deal opportunities following the acquisitions of Lotus and Crestwood Equity Partners in 2023.
Waha NatGas Prices Go Negative
2024-03-14 - An Enterprise Partners executive said conditions make for a strong LNG export market at an industry lunch on March 14.
Pembina Pipeline Enters Ethane-Supply Agreement, Slow Walks LNG Project
2024-02-26 - Canadian midstream company Pembina Pipeline also said it would hold off on new LNG terminal decision in a fourth quarter earnings call.
TC Energy's Keystone Oil Pipeline Offline Due to Operational Issues, Sources Say
2024-03-07 - TC Energy's Keystone oil pipeline is offline due to operational issues, cutting off a major conduit of Canadian oil to the U.S.