Photo by: Reuters
PERTH (miningweekly.com) – The directors of takeover target Ambassador Oil and Gas have thrown their support behind a bid by Drillsearch Energy.
The company announced on Tuesday that each of the company’s directors had accepted the unconditional Drillsearch takeover offer for their own shares, which represented about 8.8% of the issued share capital of Ambassador.
Drillsearch is offering one of its own shares for every 5.4 Ambassador shares held, implying a value of about 35.5c a share, based on the company’s closing price on August 25.
Drillsearch currently had a 54.63% shareholding in Ambassador.
The offer had been matched by New York-listed Magnum Hunter, which had offered one of its own shares for every 23.6 Ambassador shares, implying a value of 30.7c a share for Ambassador’s shares.
Magnum has previously warned that it would not increase its offer price for Ambassador, saying a change to the Cooper basin exploration programme had lessened the attractiveness of the company as an acquisition target.
The Drillsearch offer would close on August 27, while Magnum Hunter’s offer would close on September 5.