Zeta makes partial takeover bid for New Zealand Oil & Gas

Aug. 11, 2017
Singapore-based Zeta Energy Pte. Ltd., a wholly owned subsidiary of investment group Zeta Resources Ltd., has launched a partial offer for Wellington-based New Zealand Oil & Gas Ltd. (NZOG). If successful, Zeta would gain a 50.1% controlling interest in NZOG.

Singapore-based Zeta Energy Pte. Ltd., a wholly owned subsidiary of investment group Zeta Resources Ltd., has launched a partial offer for Wellington-based New Zealand Oil & Gas Ltd. (NZOG). If successful, Zeta would gain a 50.1% controlling interest in NZOG.

Zeta, which already holds or controls about 21% of NZOG’s stock, has offered 72¢ (NZ)/share (fully and partly paid), which is a 15% premium on last trading of 62.5¢ (NZ).

The offer is conditional on reaching acceptances of at least 50%.

Zeta is advised by Duncan Saville’s ICM unit, which also holds shares in NZOG. Saville also is a director of NZOG.

NZOG plans to hold an urgent board meeting to assess Zeta’s offer.

In the last 9 months, NZOG has sold two of its major assets. In November 2016 it sold its 15% of Kupe oil field to Genesis Energy, but returned to the joint venture in May by buying Mitsui’s 4% holdings in the field. In February, NZOG sold its 27.5% interest in Tui oil fields to Tamarind Management of Malaysia.

The Zeta takeover move on NZOG reflects the continuing consolidation among the smaller players in the New Zealand oil and gas exploration sector.

NZOG itself took control of Cue Energy Resources last January and in June Zeta launched a takeover for Pan Pacific Petroleum. The following month it declared its offer for Bligh Resources as unconditional.

Zeta Energy’s parent holds interests in a range of resources, including oil and gas, gold and base metals exploration and production. Its stated aim is to invest in assets and companies where the underlying value is not reflected in the market price.