Viaro to acquire RockRose Energy for $308 million
Independent energy company Viaro Energy has made an offer for the acquisition of the entire share capital of UK-based oil and gas company RockRose Energy.
RockRose said on Monday that Viaro offered 1,850 pence in cash for each RockRose share, which is a premium of 91 per cent to the volume-weighted average closing price of 970 pence per share for the three-month period ending on 3 July.
According to the value of the offer per share, Viaro is valuing the company at around £247.5 million or $308.8 million.
RockRose added that its directors consider the terms of the acquisition to be “fair and reasonable” and that they plan to advise its shareholders to accept the offer.
Along with this endorsement, Viaro already secured support from five RockRose shareholders which means it currently holds endorsements from holders of 33.3 per cent of RockRose shares.
This is Viaro’s first acquisition in the UK North Sea, and it will maintain RockRose’s existing business plan following the buy.
Andrew Austin, executive chairman of RockRose, said: “After careful reflection, the board of RockRose has concluded that accepting this offer is firmly in the best interests of our shareholders.
“It has been an exciting journey since RockRose was founded five years ago. However, for the benefit of all stakeholders, now is the time to move on and allow RockRose to continue to flourish with new backers“.
Francesco Mazzagatti, CEO of Viaro Energy, added: “I am very pleased that the board of RockRose has recommended our offer for RockRose. We have ambitious growth plans in the UKCS and we believe that RockRose’s producing assets, its staff, its commitment to health and safety, the environment and best in class operational procedures, will be an ideal platform from which to grow our presence in the UKCS“.
It is worth noting that Viaro Energy, a wholly-owned subsidiary of the Viaro Group, is a physical energy trading group with global commodities trading activities and interests in energy sector support services and upstream asset development.
Its non-executive chairman Roger Tucker said regarding the agreement: “In my long career in the industry I have had the pleasure of working with numerous companies and RockRose’s people, assets, and working practice are among the best I’ve seen.
“I’m delighted that RockRose’s senior management will be joining us for the journey ahead. Personally, I’m also pleased to be returning to the UKCS, an area I know very well, to work alongside this first-class team to deliver our growth plans in the region“.