IOG Rejects RockRose Proposal
Independent Oil & Gas plc (IOG) has confirmed that it received and “promptly rejected” an unsolicited pre-conditional proposal from RockRose Energy plc for a possible cash offer for the entire issued share capital of the company.
In a company statement posted on its website on Tuesday, IOG revealed that its board believes the proposal is opportunistic, materially undervalues the company and does not attribute fair value to IOG’s assets, nor their “significant” future upside.
RockRose announced Tuesday that, on March 1, it made a formal approach to the board of directors of IOG with a proposal for an all cash takeover offer.
The terms of the proposal were that RockRose would offer $0.26 (GBP 0.20) in cash per ordinary share for the entire issued and to be issued share capital of IOG, which would value the total share capital of IOG at $34.9 million (GBP 26.6 million).
IOG is a UK-based development and production operator with interests in 10 UK North Sea licenses. RockRose is an independent oil and gas production and infrastructure company, which focuses on onshore and offshore production opportunities and infrastructure projects.
Last month, RockRose signed an agreement to acquire 100 percent of Marathon Oil U.K. LLC and 100 percent of Marathon Oil West of Shetland Limited from subsidiaries of Marathon Oil Corporation.
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