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
Computer and printer maker Hewlett-Packard Co. said Thursday after the markets closed that its second quarter profit fell 21% from last year, hurt by lower revenue and costs related to the planned separation of the company. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast. Accounting software maker Intuit reported a plunge in third-quarter profit, hurt by impairment charges, even as results topped Wall Street estimates, driven by growth in small business segment amid a strong tax season. Struggling teen-apparel retailer Aeropostale Inc. (ARO), Thursday said its first-quarter loss narrowed from a year ago, driven largely by stronger margins even as revenues continued to plunge dropped. Nevertheless, the company lost almost one-fifth of its market value in after-hours trade, with the...
comments powered by Disqus
Follow RTT