by Kyle Morris
Shares of Hurricane Energy Plc rose 18% on Wednesday after the company said it began a formal sale process after receiving an unsolicited offer for its entire issued share capital at a premium of 13%, but that directors Do not advise shareholders to accept the bid. ,
The UK North Sea oil producer said the offer is at an indicative price of 7.7 pence per share in cash, a 13% premium compared to Tuesday’s closing price of 6.8 pence per share.
Hurricane Energy said it is in a strong financial and operating position, but Crystal Amber Fund Ltd — holder and largest shareholder of 28.9% of its shares — has indicated its willingness to monetize the shareholding. Therefore, it is initiating a formal sales process to establish whether a more attractive bid is successful.
If the transaction does not result in the sale process, the Board plans to initiate a capital return program of up to $70 million and potentially further distributions.
Shares of Hurricane Energy were up 1.20 pence at 8.00 pence at 0818 GMT.
Write to Kyle Morris at [email protected]
Credit: www.marketwatch.com /