Falklands oil explorer Rockhopper has made a recommended £29.3m cash-and-shares offer for its fellow AIM-listed company Mediterranean Oil & Gas.
Under the terms of the offer, which will be effected by a court-sanctioned scheme of arrangement, Rockhopper will pay the MOG investors 4.875p cash and 0.0172 of a Rockhopper share for each of their shares. The MOG shareholders will also receive a contingent entitlement of up to 3.55p a share, subject to the proven level of reserves in MOG’s HQ prospect off Malta.
MOG chairman Keith Henry said that various setbacks during the year – including further delays to its Ombrina Mare project off Italy – had prevented the company from implementing its growth strategy in the Mediterranean and the board now firmly believed that realising its goals would require a more heavily capitalised operation.
The deal still requires the approval of a majority of the MOG shareholders, and the company will post out information on a general meeting with proxy forms no later than June 20 – with a view to the scheme of arrangement taking effect on or around August 5.