The private investment fund is offering $0.016 per share in cash for the Australian’s firm’s shareholders
Remus Horizons PCC has launched an off-market takeover offer of AUD209.6m ($159.15m) for Australian oil and gas company FAR, which operates in West Africa, East Africa, and Australia.
The private investment fund, which is incorporated in Guernsey, is offering AUD0.021 ($0.016) per share in cash in this connection to FAR’s shareholders.
FAR said that the proposed takeover is contingent on its shareholders voting against the sale of the company’s 15% stake in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore project (RSSD project).
The takeover by Remus Horizons is also conditional on FAR’s board of directors confirming that the company has no intention to sell the stake prior to the closing of the offer.
According to Remus Horizons, its offer gives a clear alternative for the oil and gas firm’s shareholders to the proposed sale of FAR’s stake in the RSSD Project to Woodside.
Previously, FAR was to sell its stake in the $4.2bn offshore Senegalese project to ONGC Videsh Vankorneft, which was pre-empted by Woodside.
FAR’s shareholders were due to take a call on the stake sale in the RSSD Project on Wednesday. But the meeting was adjourned to 28 April to give shareholders time to study the takeover proposal from Remus Horizons.
The private investment fund said that its offer gives FAR’s shareholders a route through which they can exit their investment for cash at a price which has superior value than continuing as a shareholder.
Besides, the offer is attractive when considered in the context of the considerable risks and uncertainties of continuing as a shareholder, said Remus Horizons.
The private investment fund said that it has allocated up to $250m for the acquisition of FAR, out of its current funding capacity totalling $400m.
Earlier this year, Lukoil proposed to acquire FAR for AUD0.022 ($0.017) per share or AUD220m ($170m) in cash. However, the Russian energy company pulled out from the offer recently.