(Alliance News) - Egdon Resources PLC announced on Tuesday that the North Sea Transition Authority condition for its purchase by Petrichor Partners LP has been satisfied, further paving the way for a court-sanctioned scheme of arrangement.
The Reading-based oil and gas explorer and producer announced on May 17 that it had agreed to the all-cash takeover by Petrichor, a wholly-owned subsidiary of Dallas-based Heyco Energy Group Inc. The deal values Egdon at about GBP26.6 million, with shareholders set to receive 4.5 pence per share.
Shares in Egdon were up 3.1% at 4.33p in London around midday on Tuesday.
Both Heyco and Petrichor are ultimately owned by Explorers Petroleum Corp, which is controlled by Heyco Chief Executive Officer George Yates.
Egdon announced on July 3 that the scheme of arrangement had been approved by the requisite shareholder majority at a court meeting.
The scheme is subject to further conditions, including satisfaction of the NSTA condition. This requires Petrichor to receive written confirmation from the North Sea Transition Authority that it does not intend, as a consequence of the acquisition, to revoke any relevant licences or require further changes of Egdon's control under any relevant licences.
On Tuesday, Egdon said that Petrichor has now received the NSTA's comfort letter regarding the acquisition, and confirmed that the NSTA condition has now been satisfied.
Egdon expects the scheme to become effective on September 14, if the scheme receives court approval and the court order is delivered to the registrar of companies on time. Consequently, September 13 is expected to be the last day of trading for Egdon shares, with their cancellation taking effect two days later.
By Emma Curzon, Alliance News reporter
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