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Melbana Energy’s takeover bid for Metgasco fails

Oil and gas exploration company Melbana Energy has been unsuccessful in taking over compatriot ASX-listed oil and gas company Metgasco.

Melbana Energy said on Wednesday that the offers made under the offmarket takeover bid for all of the ordinary shares in Metgasco Limited closed on Friday, January 31.

According to the company, Melbana received acceptances for only 27.81 percent of ordinary shares in Metgasco.

Melbana Energy expects that its shares would be issued to those Metgasco shareholders who accepted the offer on or before February 14, 2020.

The oil and gas company revealed its plans to make a takeover offer for Metgasco back in July 2019. At the time Melbana said that it would offer Metgasco shareholders four fully-paid ordinary shares in Melbana for every ordinary Metgasco share held.

Melbana advised its shareholders to take no action pending a formal response from the company, and that it would confer with all key stakeholders and Melbana regarding the offer.

In October, Melbana submitted a formal offer to all Metgasco shareholders in which the company stated that it valued Metgasco at $16.4 million or $0.042 per share. The offer represented a 55.6 percent premium to Metgasco’s closing price on July 12, 2019.

Explaining its rationale for the offer, Melbana said at the time that the combined group would benefit from the combination of the asset portfolios of to create a larger oil and gas company, with a broader and more diverse shareholder base.

The companies would also, according to Melbana, be better positioned to access capital markets for fundraising purposes, attract major oil and gas companies as potential project development partners in respect of current or future development opportunities, withstand delays and unforeseen risks.

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