Cove Energy, a UK oil and gas company with primary assets in East Africa, yesterday urged its shareholders to accept the $1.8 billion takeover bid from Shell before May 23, the first closing date for the offer from Shell.
The board of Cove, having already endorsed the offer, has said it continues to believe that it is in the best interests of Cove shareholders to accept the offer.
Despite also receiving a similar offer from Thailand’s PTTEP, and the rumors that a consortium from India is preparing a $2 billion offer, the board of Cove has said that, to date, Shell Bidco is the only firm bidder and has strongly recommended its shareholders to accept the offer as soon as possible.
To support the recommendation, the board has highlighted the fact that Shell has already secured the consent of the Government of Mozambique to the indirect acquisition of Cove’s interest in Rovuma Offshore Area 1 which would arise on the takeover of the company.
An 8.5% interest in Mozambique Rovuma Offshore Area 1 is Cove Energy’s primary asset. Anadarko, the operator of the area, last week announced it had made another major discovery in the field. The discovery well, named Golfinho, encountered more than 193 net feet (59 net meters) of natural gas pay. The well was drilled using the Belford Dolphin drillship.
Offshore Energy Today Staff, May 22, 2012