By Joe Hoppe
Egdon Resources shares rose Wednesday after it said it has agreed to a takeover by Petrichor Partners that values it at around 26.6 million pounds ($33.2 million), and which would take it private.
Shares at 0702 GMT were up 2.05 pence, or 89% at 4.35 pence.
The London-listed oil-and-gas company said under the agreed terms, Egdon shareholders will receive 4.5 pence a share, a 96% premium to its closing price of 2.3 pence on Tuesday. The acquisition is expected to happen in the third quarter.
The takeover is subject to court and shareholder approval. The board of Egdon unanimously recommend shareholders vote in favor of the deal.
Petrichor is a wholly-owned subsidiary of Heyco Energy Group, the ultimate parent of which is Explorers Petroleum Corp., controlled by George Yates.
Heyco said the timing is right to buy the company and take it private as it believes the public market continues to undervalue Egdon’s assets, Egdon said. The acquisition will also add to the Heyco portfolio, create efficiencies and economies of scale and allow for more efficient deployment of capital and human resources, it added.
Write to Joe Hoppe at [email protected]
Read the full article here
