By Benjamin Chiou
Date: Thursday 28 Jun 2012
Royal Dutch Shell has extended its offer for AIM-listed oil and gas producer Cove Energy by a further two weeks and urged Cove shareholders who have not yet accepted to do so.
Shell's £1.12bn offer for Cove has already been extended on two separate occasions after Thai firm PTT Exploration and Production (PTTEP) trumped its 220p-a-share offer with its own bid of 240p a share, valuing the company at £1.22bn. Despite having already recommended Shell's offer to its shareholders, Cove's management unsurprisingly decided to then back the offer by PTTEP which was 9.1% higher.
Shell, which has stuck with its 220p-a-share offer, said that it had received valid acceptances of the offer in respect of around 3.46% of Cove's existing share capital.
PTTEP itself announced on Monday that it had extended its own offer from June 22nd to July 6th after receiving acceptances from Cove shareholders in respect of 0.25% of its existing share capital.
"Shell's decision to announce a recommended Offer for Cove fits with Shell's strategic aim to drive forward with its investment programme to deliver sustainable and profitable growth," Shell said in April at the time of the first offer.
"The proposed acquisition of Cove's portfolio would mark Shell's entry into exciting new hydrocarbon provinces, in Mozambique and Kenya, with significant potential for new LNG from recent gas discoveries offshore Mozambique, and further complementary exploration positions in East Africa."
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