Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Greymouth Makes Superior Fletcher Energy Offer


Media statement - February 27, 2001


Greymouth Petroleum, in association with major Fletcher Energy shareholders and backed by leading financial investors, today announced a rival proposal to acquire Fletcher Energy through a consortium company, Peak Petroleum Company of New Zealand.

Peak Petroleum proposes a minimum cash component of US $3.70 per share, topping the earlier Shell bid of US $3.34.

Peak will also offer Fletcher Energy shareholders the right to a guaranteed allotment of shares in Peak. In other respects the structure of the Peak proposal mirrors the Shell bid.

Peak Petroleum, which will own and operate the New Zealand and Brunei assets of Fletcher, will seek listing on New Zealand and overseas stock exchanges.

The principal New Zealand consortium members are an FR Partners private capital group, and the Guinness Peat Group and who together are committing over half of the equity capital required for the bid. Other consortium members include leading New Zealand and overseas institutional investors in Fletcher Energy.

Greymouth has asked Fletcher Challenge directors to give Peak Petroleum immediate access to commence due diligence and to postpone the March 6th Shareholders meeting to March 23rd so that an unconditional Peak offer can be put in front of shareholders.

Greymouth has entered into an agreement for the sale of Fletcher Canada & Argentina properties to Penn West Petroleum Limited at a premium to the US$600 million contained in the Shell bid. Penn West is also participating as a member of the consortium backing the new proposal.
The Peak Petroleum proposal has been structured so that it does not affect the proposed restructuring of the Fletcher Challenge Group.

Mr Mark Dunphy, Chairman of Greymouth and Peak says, “This is a friendly proposal. We are asking Fletcher Challenge directors to work co-operatively with us, in the interests of Fletcher Energy shareholders so that a superior offer for their shares can be put in front of shareholders at the same time the Shell bid is voted on”.

“The Peak Petroleum proposal enables Fletcher shareholders to say ‘no’ to the much lower and inadequate Shell deal”, said Mr Dunphy. “A number of major shareholders in Fletcher Energy have accepted the logic and investment potential of retaining the Fletcher assets in a listed, independent, New Zealand-focussed oil and gas company, rather than having these assets disappear into overseas hands at a significantly discounted price”.

For further information, please phone:
Mr Mark Dunphy of Greymouth on +649 366 3634
or Mr Bryan Clake, Vice President of Penn West in New Zealand on +649 366 3634
or Mr Bill Andrew, President of Penn West in Calgary on +1403 777 2502

Issued by Allan Boyle Associates Ltd - Contact: Cedric Allan, telephone + 649 303-1633

© Scoop Media

Business Headlines | Sci-Tech Headlines


ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>