Perth-based Tap Oil Ltd., has received an unconditional on-market takeover offer from Risco Energy Investments (SEA) Ltd., Singapore, valuing Tap at $29.8 million (Aus.).
Risco, already a major Tap Oil shareholder with 22.2% of its shares, has bid 7¢ (Aus.)/share aiming to acquire all the ordinary shares in Tap that it doesn’t already own.
Risco said the cash offer is unconditional and it has appointed Morgans Financial Ltd. to act as its on-market broker. The offer is scheduled to close on June 18.
Risco’s move on Tap comes after a turbulent year during which Risco tabled a proposal last November to change the Tap board. Risco wanted to minimize capital investment and operating costs to increase short-term returns. It wanted Tap to focus on its only production—a 30% interest in the Manora oil field in the Gulf of Thailand.
Tap’s board has advised its shareholders to do nothing until it has had time to study the offer and make a recommendation.
On the other hand, when making the takeover offer public, Risco Chief Executive Officer Tom Soulsby said as an on-market bid, the offer is unconditional and provides shareholders with a simple cash exit from their investment in Tap. Shareholders would receive the offer consideration in two trading days following their acceptance of the offer.
