THE HAGUE (dpa-AFX) - PTT Exploration and Production Public Co. Ltd., which made a cash offer to Cove Energy Plc (COV.L, CNVGF.PK) on February 24, on Wednesday said they reached agreement on the terms of a recommended cash offer to buy Cove for 240 pence per share. The acquisition values the entire issued and to be issued share capital of Cove, which operates in East Africa, at approximately 1.22 billion pounds.
The offer price represents a premium of approximately 9.1 percent to the offer of 220 pence per Cove Share announced by oil giant Royal Dutch Shell Plc (RDS-A, RDSA.L, RDSB.L, RDS-B) on April 24, which the directors of Cove have previously recommended.
The price also represents 155.3 percent to the closing Price of 94 pence per Cove Share as of December 12, the last Business Day prior to Cove's announcement of the opening of the data room to certain parties who expressed an interest in the Rovuma Project and 6.6 percent to the average Closing Price over the five Business ending on May 22.
The company noted that the Board of Cove considers the terms of the acquisition to be fair and reasonable and will unanimously recommend that Cove Shareholders accept or procure acceptance of the offer.
Accordingly, the directors of Cove confirm that they have withdrawn their recommendation of the Shell Offer.
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© 2012 AFX News
