Royal Dutch Shell extends deadline to buy Cove Energy once again

29 June 2012

The Royal Dutch Shell groups for the third time has extended the deadline for acceptance of its offer to buy Ireland’s Cove Energy for GBP1.1 billion (US$1.7 billion) by five weeks. Cove’s shareholders will now have until 11 July to make a decision, the group said in a statement.

Cove Energy, whose main asset is an 8.5 percent stake in an oil block in Mozambique’s Rovuma basin where large gas deposits have been found, is the focus of a takeover battle between Royal Dutch Shell, which put forward the first offer, and Thai group PTT Exploration & Production PCL.

After initially approving the bid by Royal Dutch Shell, of 220 pence per share, the board of Cove Energy recommended that shareholders accept the higher offer from PTT of 240 pence per share or a total of US$1.9 billion.

The oil block in the Rovuma basin, northern Mozambique, is operated by US group Anadarko Petroleum, which has a stake of 36.5 percent, and the remaining partners are Japan’s Mitsui & Co., with 20 percent, India’s Bharat Petroleum Corporation Limited and Videocon, with 10 percent each, Mozambique’s ENH (15 percent) and Cove Energy (8.5 percent). (macauhub)