North Sea operator Bridge Energy looks set for a £103million takeover from Spike Exploration after recommending to shareholders they accept the deal.
The firm operates fields in both the UK and Norwegian North Sea areas, and has stakes in the Cormorant East, Mermaid and Kerlock finds in the Northern North Sea.
Bridge, listed on both the Oslo Børs and the AIM, has four producing assets with a daily output of around 1100 barrels, plus exploration licences across the two areas.
Spike are looking to buy the entire share capital of the company, valuing the deal at 162p a share – around £103million, which has been recommended by Bridge’s board. Several major shareholders have already agreed to sell their stake.
“We are pleased to announce that Bridge has received a cash offer from Spike Exploration,” said chief executive Tom Reynolds.
“The board decided to recommend this offer as it reflects a fair valuation of our portfolio and a significant premium to the recent trading range. By tendering their pre-acceptances several of our largest shareholders have already recognised that this is the optimal path to realising value without further operational risk and additional funding.
“It allows us to crystallise the value created within the company by the Bridge team during and prior to our time as a listed business and will return valuable cash to shareholders”
Spike said the deal would be financed through available cash resources. The company, founded last year, struck a deal for up to $300million in equity with HitecVision to fund expansion and acquisitions.
Recommended for you
