(Alliance News) - Hurricane Energy PLC's suitor on Monday said it will not lift its takeover offer, which has received an endorsement from shareholders Crystal Amber Fund Ltd and Kerogen Capital, as well as independent proxy advisors.
Hurricane Energy last month agreed to be acquired by Prax Exploration & Production PLC. The oil exploration company based in Surrey, England, said the deal values the company at 12.50p per share, or GBP249.0 million in total.
Hurricane Energy shares rose 0.5% to 7.50 pence each in London on Monday, giving it a market capitalisation of GBP149.6 million.
Prax, also based in Surrey, is a subsidiary of State Oil Ltd, which is the holding company of Prax Group. The company is an oil refining, storage, distribution and sales conglomerate dealing in crude oil, petroleum products and bio-fuels.
Prax on Monday said its offer is "full and fair" and will not be lifted.
Institutional Shareholder Services and Glass, Lewis & Co, "leading independent proxy advisory firms", called on their institutional shareholder subscribers to back the deal.
In addition, Prax's offer has been backed by London-listed investor Crystal Amber, and private equity firm Kerogen.
Crystal Amber owns just under 29% of Hurricane shares, and Kerogen a hair below 16%. PRax's bid has the support of just under 45% of Hurricane shareholders.
By Eric Cunha, Alliance News news editor
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Crystal Amber (CRS)