OG Oil & Gas likely to cross minimum 50% threshold in NZOG takeover offer
By Rebecca Howard
Nov. 14 (BusinessDesk) - OG Oil & Gas's partial takeover offer for New Zealand Oil & Gas is likely to reach the minimum 50 percent threshold now its acceptances and shares total more than 36 percent and Zeta Energy has reportedly indicated it will sell if the bid gets a green light from the Overseas Investment Office.
The oil and gas division of Ofer Global received acceptances of about 6 million shares from Zeta related entities Bermuda Commercial Bank and UIL Ltd, and said Zeta Energy, which holds approximately 17 percent of NZOG, "has indicated that it intends to accept OGOG’s offer once OGOG receives a positive indication that the Overseas Investment Office will provide its consent".
OGOG has offered to acquire up to 67.55 percent of the NZOG shares it does not already hold or control at a price of 78 cents per share, up from the 77 cents per share bid it initially floated. The higher OGOG bid won over NZOG's independent directors who unanimously recommend shareholders accept the revised offer. The offer closes on Dec. 9.
"OGOG is happy with the momentum achieved by the offer at this stage," a spokesman said in a statement. "It’s a strong indication that the value of the offer is broadly recognised by shareholders."
The global firm wants to preserve NZOG's exploration opportunities and has named the Barque prospect off the Canterbury coast as too interesting to ignore. If it wins over shareholders it plans to find international partners for the deepwater prospect, which was ranked ninth among the world's top oil and gas targets in a survey presented to a recent petroleum conference in New Zealand.
OGOG is the oil and gas business of Ofer Global, a private portfolio of international businesses chaired by Eyal Ofer.
The shares recently rose 0.7 percent to 71.5 cents.