London-listed Oil and gas firm Hurricane Energy agrees £249m sale
Oil and gas company Hurricane Energy is delisted from the London Stock Market after £249 million sale agreed
Hurricane Energy will be delisted from the London stock market after the oil and gas company agrees a takeover offer worth around £249 million.
Hurricane ended a four-month sales process and said its shareholders would have to support Prax’s offer of up to 12.5 pence per share.
The energy group’s offer was about 84 percent higher than the company’s closing price of 6.8 pence on November 1, when it put itself up for sale.
Acquisition: In a deal that ended a four-month sales process, Hurricane Energy said its shareholders should support Prax’s offer of up to 12.5 pence per share
Hurricane reflected on its future in November after an ‘unsolicited’ takeover bid of 7.7 pa share.
Major shareholders such as Crystal Amber and Kerogen, who together own 45 percent of Hurricane, have offered their support for the deal with London-based energy group Prax.
Hurricane shareholders will pay £119.8 million, or 6 pence per share, upfront.
This includes 5.19 pence in the form of a dividend from existing cash and additional funds based on a scheduled liquidation next month, with the remainder to be paid by Prax.
The remaining £129.1m, or a share of 6.48 pa, will be paid subject to production milestones being reached and potential revenues if Prax builds an upstream arm in the UK. Shares rose 1.1 percent, or 0.08 pence, to 6.95 pence.