London listed company, Ophir Energy has agreed to a £390m takeover deal by Indonesian company, Medco.
The deal will cost Medco 55p per share in cash equalling to a 66% premium to Ophir’s closing price on 28 December. This was the last business day before the deal offer was announced, Ophir’s shares, Wednesday were trading at 53.8p, 6% higher.
Bill Schrader, Ophir Energy chairman said, “We are pleased to announce a recommended transaction with Medco. The transaction delivers upfront value in cash to Ophir shareholders for the strategy the Ophir directors set out in September 2018.
“The Ophir board believes the Medco offer reflects the future prospects of Ophir’s high-quality assets, as reflected in the premium of 66% to the closing price of 33.20p per Ophir share on 28 December.
“Consequently, the Ophir board intends to recommend unanimously the transaction to Ophir shareholders.”