Rendering of the Sangomar Field Development FPSO (Image courtesy of SOFEC)
Oil and gas explorer Far Ltd said on Thursday it received a A$209.6 million ($159.15 mln) all-cash takeover proposal from private investment firm Remus Horizons PCC Ltd.
The offer values Far at 2.1 Australian cents per share, representing a premium of 90.9% to the company's shares last closing price of 1.1 Australian cents.
Cash-strapped Far has struggled due to the coronavirus-induced downturn in the oil and gas industry, with the Africa-focused explorer defaulting in June on its contributions to the Sangomar oil project off Senegal's shore.
The company exited the project in November, agreeing to sell its 15% stake to a unit of India's ONGC Videsh Ltd for $45 million. [The sale was then blocked by Woodside which exercised its pre-emption rights.]
Far said Remus Horizons was willing to hold talks on a loan of up to $50 million from the date of the binding offer to enable the company to meet its funding obligations towards its interest in the Rufisque, Sangomar, and Sangomar Deep project.
Far also said it was seeking clarifications from Remus Horizons on the proposal and had decided to postpone its shareholder meeting scheduled for Dec. 21 to Jan. 21, 2021.
Remus Horizons did not immediately respond to a request for comment.
($1 = 1.3170 Australian dollars)
(Reporting by Nikhil Subba in Bengaluru; Editing by Aditya Soni)
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