Semi-state Thai group PRR makes counterproposal to buy Cove Energy

28 February 2012

Bangkok, Thailand, 28 Feb – Semi-state Thai group PTT Public Company has made a counterproposal to buy Irish company Cove Energy for US$1.77 billion, outbidding the proposal from the Dutch Shell group.

Last week the Dutch Shell group made a proposal to buy Cove Energy for US$1.57 billion (£992.4 million) or the equivalent of £1.95 per share.

On Friday the Thai group put forward its higher offer of £2.20 per share, a decision that has the support of the Thai government, according to a statement issued in Bangkok by the Department of Mineral Fuels of the Energy Ministry.

In response to PTT’s counterproposal the board of Cove Energy announced it would begin talks with the two competing groups.

Cove Energy is listed on the Alternative Investment Market (AIM) of the London stock Exchange and its main asset is an 8.5 percent stake in Area 1 of the Rovuma Basin in northern Mozambique, where test wells have shown the existence of natural gas reserves estimated at 30 trillion cubic feet. (macauhub)