Dutch Shell group wants to buy Cove Energy, a company involved in oil exploration in Mozambique

23 February 2012

London, United Kingdom, 23 Feb – The Dutch Shell group has put forward a proposal to buy British company Cove Energy, a company with oil assets in Mozambique, for US$1.6 billion the group announced in a statement issued Wednesday in London.

Cove Energy’s main asset is an 8.5 percent stake in Area 1 of Mozambique’s Rovuma Basin, where US group Anadarko Petroleum, which has the biggest stake and is the operator, announced it had discovered natural gas reserves estimated to total 30 trillion cubic feet.

In a statement published on its website Dutch Shell said it had a “firm intention,” to offer 1.95GBP for each Cove Energy share, which represents a premium of 28.5 percent against the average share price in the five trading days before 21 February.

In its turn the board of Cove Energy said Wednesday, in a statement, that it will propose that shareholders accept Dutch Shell’s offer at the suggested price.

Dutch Shell’s offer to acquire Cove Energy, which is also involved in oil prospecting in Tanzania and Kenya, will be subject to the approval of the Mozambican government. (macauhub)