Nido Petroleum directors have unanimously recommended off market takeover bid by BCP Energy International, subsidiary of Thai oil refinery Bangchak, for 5.5 cents per share.
Nido Petroleum directors have unanimously recommended off market takeover bid by BCP Energy International, subsidiary of Thai oil refinery Bangchak, for 5.5 cents per share.
Nido Petroleum directors have unanimously recommended off market takeover bid by BCP Energy International, subsidiary of Thai oil refinery Bangchak, for 5.5 cents per share.
The bid is at a 62 per cent premium to the company’s one month volume weighted average price.
Business News reported last week that BCP had acquired a 19.66 per cent stake in Nido from Abu Dhabi-based Petroleum International Investment Corporation as its Thai parent company attempts to expand into upstream oil and gas production.
The offer is subject to a 90 per cent minimum acceptance condition and approval by the Foreign Investment Review Board.
Nido has assets in Indonesia and the Philippines, in the neighborhood of Bangchak’s refinery and downstream oil and gas business.
Bangchak has a market capitalization of around $1.4 billion and will not need to raise any funding to complete the takeover.
Nido managing director Philip Byrne said that he had spoken to Bangchak during a capital raising 18 months ago, when they had expressed an interest in expanding their business.
Last week Bangchak decided to pursue Nido as part of this plan.
“The key thing for us is that it’s an attractive premium for our shareholders,” Mr Byrne said.
Chairman Bill Bloking echoed Mr Byrne’s comments.
“All directors are of the view that this is a compelling offer and, upon completion, will provide the certainty of cash for Nido shareholders at a substantial premium to recently trading Nido shares.
Nido was up 24.4 per cent to 5.1 cents at the time of writing.
Nido was advised by Miro Advisors.