Ophir Shareholders OK Medco Bid (Update)

(Updates throughout)

Indonesian Medco Energi looks certain to buy UK-listed Ophir, following a shareholders' meeting and a court meeting that voted in favour of it, at £0.575 p/share. Ophir said in a stock-exchange announcement March 25 that the resolution had the support of over three quarters of the shareholders representing almost nine tenths of the shares. Three quarters was the threshold needed to secure approval, and the deal is expected to close in the first half of this year.

The sellers had earlier benefited from a battle between Soco, bidding a mix of equity and cash and Medco, pushing the latter to bid higher to £0.55 ($0.727)/share. However Ophir referrred to an amended form submitted at the Court Meeting to reflect "the increased cash consideration payable to scheme shareholders of £0.575/share for each scheme share held. The resolution was accordingly passed."

There had been reports that not all the shareholders were happy with the Medco bid, and there were enough of them to derail it. One hedge fund had bought in at £0.55p/th, taking 18.7% of the shares and was able, with a few other shareholders, to force the bid price to £0.575 March 20, valuing the company at £408mn.