"Accordingly, Grant Samuel has concluded that the Medco offer is neither fair nor reasonable," the report said. It was released to the stock exchange by Novus.
Indonesia's PT Medco Energi International has made a hostile A$1.74 a share bid for Novus, while a group including Novus chief executive Bob Williams has offered A$1.77 a share. The management buyout group includes Hong Kong-based investment banking group Crosby Capital Partners.
"Effectively, the Medco offer attributes no value to Novus' exploration upside," Grant Samuel said in its report. Novus is valued at A$368 million to A$ 516 million based on the valuation.
In early trade, the stock was steady at A$1.89, valuing the company at about A$345 million.
Grant Samuel said the price range "represents the full underlying value of Novus."
"The value exceeds the price at which, based on current market conditions, Grant Samuel would expect Novus shares to trade on the ASX in the absence of a takeover offer or similar transaction," it said.
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