Oz Metgasco Gets Takeover Offer

Sydeny-listed Metgasco July 15 said its has received an unsolicited conditional takeover offer from fellow Australian explorer Melbana Energy.

“Metgasco thanks Melbana for its interest and recommends shareholders take no action pending a formal response and recommendation by the company,” it said.

Metgasco said it will now confer with all key stakeholders, and Melbana, as well as engage with other interested parties in order to ensure shareholders of the company are fully informed and a comprehensive response and recommendation can be made in a timely fashion.

Melbana in a separate statement said the offer to Metgasco shareholders, if made, will be an all share offer under which it will offer Metgasco shareholders four fully paid ordinary shares for every one ordinary Metgasco share held.

The offer implied a value of 4 cents a share for Metgasco, which represented a premium of 48% to the company’s closing price on July 12, and a 35% premium to its five-day volume weighted average share price since Metgasco’s announcement to plug and abandon the South Marsh Island well, in the Gulf of Mexico.

Melbana said the offer would be subject to a number of conditions, including a 50.1% minimum acceptance, as well as shareholder approval.