According to FAR, the offer is conditional and the terms of it are currently uncertain
Australian oil and gas company FAR has received an A$209.6m ($159.1m) takeover offer from Remus Horizons PCC, a private investment fund regulated by the Guernsey Financial Services Commission.
As per the conditional non-binding indicative proposal, the private investment fund offers to acquire the Australian energy company for A$0.021 ($0.016) per share in cash.
FAR stated that the proposal is not a legally binding offer and that there is no guarantee that it will necessarily to result in a transaction. The company also said that the terms of the proposal are currently uncertain.
The Africa-focussed oil and gas exploration and development company has operations across West Africa, East Africa, and Australia.
According to Remus Horizons, the price it is offering represents a premium to the cash backing per share that would exist if FAR was to close the sale of the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore project (RSSD project) in Senegal to Woodside Energy (Senegal).
Woodside had pre-empted the earlier proposed sale of FAR’s 15% stake in the $4.2bn offshore Senegalese project to ONGC Videsh Vankorneft.
Remus Horizons’ offer is conditional on the rescheduling of a meeting of FAR’s shareholders for the approval of the RSSD project transaction.
The oil and gas company has agreed to the condition and has postponed the meeting to late January 2021.
The private investment fund also wants FAR to give access to management and information pertaining to the RSSD project and the former being satisfied with such information.
Besides, the offer from Remus Horizons is subject to no superior proposal emerging for the Australian firm.
FAR stated: “Remus is willing to discuss the possibility of making available a zero coupon bridge loan to FAR of up to US$50 million from the date of any binding offer on terms and subject to conditions to be agreed to enable FAR to meet its valid funding calls in relation to its interest in the RSSD project and other necessary working capital requirements.”