logo
Share SHARE
FONT-SIZE Plus   Neg

Shell, Cove Energy Reach Deal On Terms Of Recommended Cash Offer - Quick Facts

Oil giant Royal Dutch Shell Plc (RDS-A, RDSA.L, RDSB.L, RDS-B) announced that the boards of directors of Cove Energy Plc (COV.L, CNVGF.PK) and Shell Bidco have reached agreement on the terms of a recommended cash offer to be made by Shell Bidco for the entire issued and to be issued share capital of Cove.

Shell Exploration and Production (XL) B.V., known as Shell Bidco, is an indirect wholly-owned subsidiary of Shell incorporated in the Netherlands.

Cove Shareholders who accept the offer will be entitled to receive 220 pence in cash for each Cove Share. The Offer values the entire issued and to be issued share capital of Cove at around 1.120 billion pounds.

The offer represents a premium of 134 per cent. to the Closing Price of 94 pence per Cove Share as of December 12, 2011, the last Business Day prior to the date of the announcement by Cove of its proposed sale of the Rovuma Area 1 Interest. It also represents a premium of 95.6 per cent. to the Closing Price of 112.5 pence per Cove Share as of January 4, 2012, the last Business Day prior to start of the Offer Period; and 42.4 per cent. to the Closing Price of 154.5 pence per Cove Share as of February 21.

The proposed acquisition of Cove's portfolio would mark Shell's entry into exciting new hydrocarbon provinces, in Mozambique and Kenya, with significant potential for new LNG from recent gas discoveries offshore Mozambique, and further complementary exploration positions in East Africa.

On February 22, Royal Dutch Shell had announced an offer to acquire Cove Energy for 195 pence per share in cash or a total value of approximately 992.4 million pounds.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
A Pennsylvania woman has sued Chick-fil-A after she claimed a dead rodent was found baked into her chicken sandwich. Ellen Manfalouti of Northampton has filed a lawsuit in Bucks County Court against Chick-fil-A, seeking more than $50,000 for the physical and psychological damages that she endured after the incident occurred. Early Uber investor Shervin Pishevar has alleged that venture capital firm Benchmark Capital is seeking to remove Arianna Huffington from the ride-hailing company's board of directors. Pishevar also accused Benchmark of holding Uber hostage by threatening to block investments in the company and urged it to step down from Uber's board of directors. A class-action lawsuit has been filed against Nestle's marketing and sales of Poland Spring bottled water, accusing it of not meeting the federal definition of spring water and of being "a colossal fraud perpetrated against American consumers."
comments powered by Disqus
Follow RTT