Remus sets its cap for FAR

14th April 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH ( – ASX-listed FAR on Wednesday flagged a potential takeover offer from Remus Horizons.

The company told shareholders that it had received a letter from Remus stating its intentions to make a 2.1c a share offer for all the shares in FAR, conditional only on shareholders rejecting the sale of the company’s interest in the Rufisque offshore, Sangomar offshore and Sangomar deep offshore (RSSD) contract area, offshore Senegal.

FAR earlier this year inked a sale and purchase agreement with RSSD joint venture partner Woodside over the Senegal assets, after Woodside exercised its pre-emptive rights over the FAR interest, matching a $45-million offer from ONGC Videsh Vankorneft.

In addition to the cash payment, the agreement would also see FAR being reimbursed for its share of working capital, and entitlement to certain contingent payments capped at $55-million.

FAR shareholders are expected to vote on the RSSD sale on April 15.

FAR said on Wednesday that shareholders were likely to want an opportunity to consider the implications of the Remus offer prior to voting on the sales resolution, with the board noting that it would address this development as the first item of business at the upcoming shareholder meeting.

FAR in February this year also fielded a conditional non-binding indicative proposal from Russian energy company PJSC Lukoil, which had stated its intention to acquire all of the FAR shares at a price of 2.2c each, which prompted the company to postpone the initial shareholder meeting to vote on the RSSD sale.

Lukoil subsequently decided not to proceed with the takeover offer.