A rival bidder to Zeta Energy Pte. Ltd. for the takeover of New Zealand Oil & Gas Ltd. (NZOG) has emerged in the form of OG Oil & Gas Ltd. (OGOG), a subsidiary of the Monaco shipping company Ofer Global Group.
The indicative partial bid, expressed in a letter to NZOG Chairman Rodger Finlay, plans to offer 77¢ (NZ)/share for no more than 70% of NZOG and at least a controlling interest. OGOG already holds about 4.3% of the New Zealand explorer.
OGOG says it is making the rival offer because it believes NZOG has good acreage in New Zealand with potential for further discoveries and it was disappointed to see that Zeta was not interested in these assets. Zeta’s bid, rather, was treating NZOG as a cash box.
In the letter to NZOG, OGOG Chief Executive Alastair McGregor said Zeta’s stated focus on reducing NZOG’s financial resources and headcount is in direct conflict with enhancing shareholder value, puts the company at risk of losing its valuable foothold in New Zealand, and does little or nothing to increase private-sector investment in the New Zealand economy.
Zeta, a subsidiary of Singapore company Zeta Resources Ltd., lodged its bid of 72¢ (NZ)/share for 42% of NZOG’s fully and partly paid shares it doesn’t already own just over a month ago (OGJ Online, Aug. 11, 2017). The offer is conditional on it reaching at least 50% interest.
Zeta already has 21% of NZOG, lifted to 29% with conditional lock-up agreements with other shareholders, H&G, Bermuda Commercial Bank, Pan Pacific Petroleum, and UIL.
Zeta is advised by Duncan Saville’s ICM unit, which also holds shares in NZOG. Saville also is a director of NZOG.
NZOG’s independent directors say, however, that they are likely to recommend NZOG investors reject the Zeta offer because it undervalues the company. These directors are withholding judgement on the OGOG offer until a formal bid is made and accessed.