Sale of Cove Energy expected to be concluded Monday or Tuesday

16 July 2012

The sale of Irish company Cove Energy to Royal Dutch Shell or to Thai group PTT Exploration & Production is due to be finished Monday or Tuesday of this week by a decision of the United Kingdom Takeover Panel announced Friday in London.

According to this decision, the two groups have until Monday (16 July) to convince Cove Energy shareholders to accept their offers, of 220 pence per share from Royal Dutch Shell and 240 pence from PTT Exploration & Production, or US$1.7 billion and US$1.9 billion, respectively.

If the process is not concluded by the end of the day Monday, the sale of Cove Energy will be decided at an auction held Tuesday, according to the decision from the Takeover Panel, which brought an end to a battle for the Irish company that has gone on for several months.

By last Friday the two groups had received approval of their respective offers of 3.27 percent of shareholders Royal Dutch Shell and 0.25 percent of shareholders in the case of the Thai group.

The interest in Cove Energy, whose shareholders put it up for sale in December 2011, is the result of an 8.5 percent stake in an oil field in the Rovuma basin, northern Mozambique, operated by US group Anadarko Petroleum.

The remaining partners in the block, in which huge natural gas reserves have been found, 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)