Independent directors of Perth-based Tap Oil Ltd. have rejected an unsolicited indicative, conditional, and nonbinding takeover proposal from Thailand-based Northern Gulf Petroleum Holdings Ltd. that rivals the earlier offer from Singapore company Risco Energy Investments (SEA) Ltd.
Both companies are existing shareholders of Tap Oil.
Northern Gulf holds 25.5% of Tap Oil’s issued share capital. Risco owns 28.5% of Tap Oil.
Northern Gulf has made an off-market bid to gain another 10-20% of Tap Oil, offering 10-11¢ (Aus.)/share (OGJ Online, Aug. 10, 2018).
Risco’s latest bid last week was for 9.1¢ (Aus.)/share.
Northern Gulf’s offer has many conditions, including that Tap Oil’s two independent directors withdraw their recommendation of the existing Risco cash on-market offer and unanimously recommend acceptance of the Northern Gulf proposal which hinges on it acquiring a minimum of 30% shareholding in Tap Oil.
Subsequently the Independent directors—Damon Neaves and Govert van Ek—have decided the Northern Gulf offer in its current form is not a superior proposal to the Risco bid.
The Risco offer is scheduled to close on Aug. 27 unless further extended or withdrawn.