Singapore’s O.G. Oil & Gas (“OGOG”) has managed to secure the minimum acceptance threshold under its partial takeover offer for New Zealand Oil & Gas.
According to OGOG’s statement on Tuesday, the acceptances when combined with its current shareholding in New Zealand Oil & Gas total more than 62% of New Zealand Oil & Gas’s fully paid ordinary shares currently on issue.
The acceptances include the shares held or controlled by Zeta Energy, which had previously attempted to take over NZOG. Zeta, which holds approximately 17% of New Zealand Oil & Gas’s fully paid ordinary shares currently on issue, has accepted OGOG’s offer for 100% of its shares.
Alastair McGregor, Chief Executive of OGOG, said: “We are delighted to have secured the shareholder support we need for our offer to be successful. This is an important milestone for New Zealand Oil & Gas, for OGOG and for the broader Ofer Global Group. We are looking forward to getting to work.”
OGOG, part of the Ofer Global Group, is offering to acquire up to 67.55% of the New Zealand Oil & Gas shares it does not already hold or control at a price of 74 cents per fully paid share. The offer period will close on January 8, 2018.
Providing the rationale for the NZOG offer, OGOG recently said NZOG was in an enviable position, with the right leadership and sufficient capital to take advantage of this attractive point in the exploration and development cycle.
The company said it felt it was the right time in the exploration and development cycle to invest in the oil and gas sector.
“After many years of lean investment, we feel there is a unique opportunity for companies that are willing and able to prudently deploy resources toward new exploration.”
“We have chosen not to make a full takeover offer because we believe it is important that NZOG maintains its public listing on the NZX Main Board. By remaining a public company, NZOG will be able to access new capital to fund future growth and will give existing shareholders (even those who accept our Offer) the opportunity to participate as the business develops.”
The Independent Directors of New Zealand Oil & Gas have unanimously recommended that shareholders accept the OGOG Offer (PDF).
Offshore Energy Today Staff