FAR Ltd., Melbourne, adjourned its general meeting to consider Woodside Petroleum’s offer to acquire its interests in Sangomar oil field and surrounding permits offshore Senegal following an eleventh-hour confirmation of a previous takeover offer by private investment group Remus Horizons PCC Ltd.
The adjournment provides the opportunity for shareholders to consider terms of the reiterated takeover proposal, FAR said. Remus has offered to buy all FAR’s shares for 2.1 cents (Aust) each, a total consideration of $210 million (Aus.).
The new offer is conditional only on FAR shareholders rejecting the sale of FAR’s interest in the Senegal permits to Woodside and that FAR directors confirm there is no intention to dispose of this interest prior to the closing of the Remus takeover deal.
Remus said its offer represents about 23% more than the cash backing of $0.0171/share (Aus.) that would exist if FAR went ahead with the sale of the assets to Woodside, and added that it provides a route whereby FAR shareholders can sell FAR shares for cash at a price that represents superior value compared to remaining a shareholder and incurring the risks of an uncertain future for the company.
If FAR directors confirm there is no intention to dispose of the Sangomar development project and surrounding assets prior to a close of its offer, Remus will declare its offer unconditional.
Remus’ objective is to gain outright ownership of FAR and subsequently fund Sangomar Phase 1 development.
Remus has a funding capacity of US$400 million, US$250 million of which is allocated to the acquisition of FAR.
Remus said it is willing to discuss making available a bridge loan to enable FAR to meet defaulted funding calls for its 15% interest in the Sangomar project.
FAR will recommence the general meeting on Apr. 28.
