Mexico's Alfa Says Offer for Pacific Rubiales is 'Fair and Final'
(Reuters) - Mexico's industrial conglomerate Alfa said on Thursday the all-cash offer it and Harbour Energy have made to buy Canadian oil company Pacific Rubiales is "full, fair and final," the Mexican company said in a statement.
The two companies are "disappointed" with a high-profile recommendation to reject the bid and they "do not intend to increase" their offered purchase price, Alfa said.
The statement released by Alfa comes after Institutional Shareholders Services (ISS), an influential proxy advisory firm, recommended that the $1.61 billion sale of Pacific Rubiales Energy Corp should be rejected.
O'Hara Administration Co, which represents holders with nearly 20 percent of Pacific Rubiales shares who want to block the offer, said on Wednesday that ISS raised a number of valid problems with the bid.
Alfa and Harbour Energy's $5.26 per share offer for Pacific Rubiales, Colombia's No. 2 oil producer, was made at a difficult time given that its shares have plunged 75 percent over the last year as crude prices fell and the company struggled under its hefty debt load.
In its statement, Alfa said the all-cash offer represents an 81 percent premium to Pacific Rubiales shareholders compared to the 30 day volume weighted average price prior to the announcement of the bid on May 5.
Pacific Rubiales has said it disagrees with the proxy management firm's conclusion, arguing the offer was in the interest of shareholders and that three fairness opinions supported it.
Pacific Rubiales shareholders are set to vote on the acquisition offer at a special meeting on July 7.
The Alfa statement added that if the offer is rejected by Pacific Rubiales shareholders "we will have no choice but to pursue (oil sector) opportunities in Mexico with other partners" and that Alfa will consider the possible divestment of its current stake if a higher offer is made.
(Reporting by Luis Rojas Mena and David Alire Garcia; Editing by Diane Craft)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension