Venture Production welcomed an announcement yesterday by the Takeover Panel of a “put up or shut up” deadline for Centrica to make a firm offer for the Aberdeen-based oil and gas operator.
The panel said it had imposed a deadline of 5pm on July 13, by which time Centrica must either indicate a firm intention to make an offer for Venture or announce that it does not intend to make an offer.
British and Scottish Gas owner Centrica revealed in March it had acquired more than 33million shares in Venture at 725p each and held a 23.6% stake in the company.
Centrica said at the time it would consider options including a possible cash offer for Venture, which believed a takeover offer at the 725p price would substantially undervalue the company.
Venture said yesterday that prior to its request that the Takeover Panel make a “put up or shut up” ruling, the company’s chairman and chief executive held a meeting with their counterparts at Centrica at which no firm offer was forthcoming.
The Aberdeen company said that by July 13, Centrica would have had nearly four months to put forward a firm offer and Venture’s board believed it was in the interests of the company and its shareholders that this period of protracted uncertainty was brought to an end.
It also stressed its strong operational performance since mid-March, with production up 17% year-on-year and the successful appraisal of three discoveries.
It said that at the end of March it had been able to report a 12% increase to year-end total proven and probable reserves to about 240million barrels of oil equivalent, supported by an independent assessment.
The company added that the external market environment had also improved materially, with commodity prices increasing significantly during the past few months and new tax allowances introduced which would benefit its portfolio of undeveloped oil and gas fields.
If no firm offer is promised by July 13, Centrica will have to wait six months from that date before reviving any bid interest.
Venture’s shares closed down 7.5p yesterday at 763p.
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