(Alliance News) - Morocco-focused gas developer Sound Energy PLC on Tuesday outlined another takeover proposal for Angus Energy PLC, after three previous bids were rejected by the UK-focused oil and gas company.
Angus Energy has recently kicked off a formal sales process. On Monday, it said it has received multiple serious approaches.
Sound has made a fourth proposal for Angus Energy. The offer comprises of 0.680 of Sound stock for each Angus share. Based on Sound's 2.20 pence closing price on Monday, the offer values each Angus share at 1.50p, valuing Angus Energy's equity at GBP21.6 million.
Angus Energy shares were 8.2% higher at 1.22p each in London on Tuesday morning, valuing the company at GBP13.4 million. Sound Energy was trading 2.2% lower at 2.15p, giving it a market value of GBP35.1 million.
Sound on Tuesday said it has made previous offers of 1.00 pence per Angus share, 1.30p and 1.40p. Two were made in December and one was made in January. All three were rejected.
Sound noted the first offer was a 54% premium to Angus Energy's 0.65p closing price on December 17, the day before the bid was tabled. The 1.30p offer was doubled the December 17 share price, while the 1.40p bid represented an even chunkier premium.
The fourth and latest proposal represent a 32% premium to Angus Energy's closing price on Monday.
"Under the terms of the possible offer, it is expected that Angus shareholders would own approximately 38% of the combined group, and Sound Energy shareholders would own approximately 62% of the combined group," Sound explained.
"Given the possible offer is proposed to be structured as an all-share offer, Sound Energy is currently only minded to proceed with the possible offer on the pre-condition that a recommendation from the Angus Board is ultimately forthcoming."
The tie-up offers a "strategically compelling proposition", Sound Energy said.
"Sound Energy believes the potential combination would represent the combination of two complementary businesses, with attractive onshore gas developments in high gas price jurisdictions," the company added.
Sound Energy said that so far, it has the support of just under 14% of Angus Energy shareholders.
"The Sound Energy directors look forward to constructive engagement with Angus regarding the possible offer. At this stage, there can be no certainty that an offer will be made," the company added.
Angus Energy earlier in January unveiled a strategic review and formal sales process.
The AIM listing at the time said its market capitalisation did not reflect its strategic value. It is a "valuation mismatch" that other smaller energy companies also experience, Angus added.
Angus explained it had received an indicative non-binding offer for some or all of its 51% stake in the Saltfleetby gas field in East Lincolnshire, UK.
By Eric Cunha; ericcunha@alliancenews.com
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