LONDON: British oil and gas explorer Salamander Energy Plc, which operates in Indonesia and Thailand, said it had received a conditional proposal from Ophir Energy Plc and that it was seeking to clarify details of the potential offer.
Shares in Salamander, which first put itself on the block in May, rose as much as 24.6 percent, making them the top percentage gainers on the London Stock Exchange last morning.
A consortium led by Spanish firm Compania Espanola de Petroleos (CEPSA) and Jynwel Capital has also approached Salamander. However, the consortium has not given any details of its proposal or any confirmation that an offer would be made, the London-listed company said.
Salamander, which had a market capitalisation of about £207m ($333m) at Friday’s close, said it was in discussions with Ophir and the CEPSA consortium regarding their proposals.
Under UK takeover rules, the bidders have until November 24 to make clear their intent either to make a firm offer for the company or to walk away. The deadline could also be extended if the firms make such a request.
The Sunday Times reported that Ophir Energy and Spanish rival CEPSA were preparing competing takeover bids that could value Salamander at over £275m ($442m).
“(Ophir and Salamander) may be a financial fit but, at first sight, it is difficult to see where significant value could be added. Ophir shareholders may prefer to put their own assets in the shop window,” Liberum analysts said in a note.
Reuters
