Photo: Image courtesy of Ophir Energy

Medco increases Ophir takeover bid to $537 million

London-based Ophir Energy on Wednesday said that Medco Energi Global has decided to increase the recommended all cash offer to acquire Ophir. 

Ophir and Medco Energy reached an agreement in January to price the offer at 55 pence in cash for each Ophir share.

On Wednesday, Ophir informed the two companies have renegotiated the terms with Medco agreeing to pay 57.5 pence in cash for each Ophir share. This raises the total value of the transaction to £408.4 million ($537.4 million).

The final offer represents a premium of approximately 73.2 percent to the closing price of 33.20 pence per Ophir share on December 28, 2018, the last business day before Medco disclosed its potential offer.

It also represents a premium of 68.5 percent to the volume weighted average share price for the one-month period ended December 28, 2018, of 34.13 pence per Ophir share and 49.8 percent to the volume weighted average share price for the three-month period ended December 28, 2018, of 38.38 pence per Ophir share.

Medco noted that the offer is final and will not be increased further.

In a separate statement, Ophir said that it had received an unsolicited and highly preliminary indication of interest from Coro to acquire Ophir shares, however, following the increased offer by Medco, Coro said it does not intend to make an offer.

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