Venture dismisses Centrica's final offer deadline

Uchenna Izundu
OGJ International Editor

LONDON, Aug. 18 -- Venture Production PLC again rejected the £1.3 billion cash takeover bid from Centrica Ltd., despite a deadline extension to Aug. 28 to buy shares in the company.

Venture said the offer undervalued the company and urged shareholders not to sign any documentation relating to Centrica’s deal. It called on Centrica to offer a “fair price” for its unique portfolio in the UK North Sea.

Centrica received valid acceptances representing 40.8% of the issued share capital of Venture. It has shown an interest in the company for months and has obtained 29.9% of it.

A report compiled by Resource Investment Strategy Consultants pegged Venture’s worth at 1,066-1,385 pence/share, much more than the 845 pence/share submitted by Centrica.

But Centrica dismissed the report commissioned by Venture, arguing it was highly optimistic and lacked credibility. “The offer represents a compelling opportunity for Venture shareholders to realize the value of their shares in cash at a time of continued economic uncertainty and market volatility,” it added.

Venture also insisted it has the “financial strength” and technical expertise to implement its projects in the UK North Sea.

The European Commission is reviewing the merger process and is to be finished by Aug. 26. Centrica said it believes “no material antitrust issues are likely to arise in relation to the offer.”

Contact Uchenna Izundu at [email protected].