After the failure of the proposed Roc Oil-Horizon Oil merger, the board of Roc Oil Ltd., Sydney, has unanimously voted to accept the most recent $474 million (Aus.) all-cash takeover offer by Chinese combine Fosun International Group (OGJ Online, July 11, 2014).
Fosun has offered 69¢/Roc share conditional on a minimum of 50% acceptance. It is the Chinese company’s first entry into the oil and gas business.
Roc directors say the offer represents a premium to the levels at which Roc shares were trading before it announced the Horizon merger back in April this year. That $800 million merger deal fell through last month when Horizon decided not to compete with the Fosun offer.
The directors added that the Fosun bid provides certain and immediate value and removes risk for shareholders.
On a stand-alone basis Roc has relatively limited opportunities for growth, they said. The company’s asset portfolio largely consists of producing projects approaching or in decline.
Roc said it was likely to need additional funding for exploration and development.
Roc’s largest shareholder, the Allan Gray Group with 20% of the company, has also accepted the Fosun offer.