(Alliance News) - Wentworth Resources PLC on Friday said advisors from an independent proxy advisory firm recommended that shareholders vote in favour of its planned takeover by Etablissements Maurel & Prom SA, a Paris-listed and based oil company focused on the production of hydrocarbons.
Wentworth, a Tanzania-focused natural gas production company, in December said it expected the deal to complete in the second quarter of 2023.
The company on Friday said the court meeting and general meeting regarding the takeover are on February 23.
Wentworth's board on December 5 recommended the takeover. The offer is for 32.5 pence per share in cash, valuing Wentworth at around GBP61.7 million. The price is a premium of around 30% to the closing price of 25.0p on December 2, the last trading date before the announcement.
The offer is still higher than Wentworth Resources' share price of 30.95p per share on Friday afternoon. The stock traded 0.5% higher on Friday in London.
On Thursday, Wentworth noted a release by its potential soon to be owner Maurel of an updated reserve estimate regarding the Mnazi Bay license as at December 31. Wentworth said it is in consultation with ERC Equipoise Ltd in relation to the 2022 reserve estimate and might update its independent asset valuation under rule 29 of the UK takeover code.
Maurel & Prom last week Thursday reported that its working interest gas production on the Mnazi Bay permit was 43.2 million standard cubic feet per day, with a gross production of 90.0 mmcfd. This was up from previously reported 38.5mmcfd, or gross 80.0 mmcfd for 2021. Maurel has a 48% working interest in Mnazi Bay.
By Tom Budszus, Alliance News reporter
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