FAR Ltd., Melbourne, received a $210 million (Aus.) all-cash takeover proposal from private investment fund Remus Horizons PCC Ltd.
The proposal is conditional and non-binding and values FAR at 2.1 cents/share (Aus.), nearly double the company’s last closing price of 1.1 cents/share (Aus.).
FAR issued a statement cautioning that the proposal is not a legally binding offer and that the proposal terms are still uncertain.
Remus, a fund regulated by the Guernsey Financial Services Commission in the Channel Islands, stated in its correspondence with FAR that the price represents a premium to the cash backing per share that would exist if FAR was to complete the sale to Woodside Petroleum of its 15% interest in the Rufisque, Sangomar and Sangomar Deep (RSSD) holdings (including Sangomar field) offshore Senegal.
Woodside pre-empted the sale of FAR’s Senegal interests to ONGC Videsh Vankorneft of India for US$45 million in early December (OGJ Online, Dec. 4, 2020).
Conditions for Remus’ proposal include rescheduling of the FAR shareholder meeting called to consider the RSSD sale to Woodside, access to satisfactory management and information related to the RSSD project, and that no superior proposal emerges.
Remus is willing to discuss a loan of up to US$50 million to FAR from the date of a binding offer so that FAR can meet its funding obligations towards its RSDD project interest, FAR said.
FAR is currently seeking clarification from Remus on the proposal and has postponed its planned shareholders meeting for 1 month to Jan. 21, 2021.
