Ophir Bids for Salamander Energy

In a bid to expand further in southeast Asia, Africa focused Ophir Energy has offered to buy Salamander Energy.

Ophir has recently acquired assets in Mynamar and Indonesia. 

Ophir could be getting a bargain, analysts said, after a possible rival in the bidding process walked away, according to Reuters. But shareholders might be less happy about taking on Salamander's $250 million debt, as well as the all-stock nature of the deal.

"We expect arbitrage between the two to weigh heavily on Ophir's share price," Societe Generale analysts said in a note, Reuters added.

A consortium led by Spain's Compania Espanola de Petroleos (CEPSA) on Monday decided not to be leaving the way clear for Ophir.

Ophir's offer of 0.5719 shares for every Salamander share values Salamander at 266.9 million pounds, based on Ophir's closing price of 180.1 pence on Thursday.

The acquisition would give Ophir an oilfield already in production off Thailand's coast and a gas development in Indonesia, Reuters said.