Join our daily newsletter At The Bell to receive exclusive market insights
- Oil and gas explorer Far Limited (FAR) has received a non-binding buyout proposal from private investment fund Remus Horizons
- Remus, which is regulated by the Guernsey Financial Services Commission, intends to make an offer to buy all of Far’s outstanding shares at 2.1 cents each
- Far shares were suspended back in September, after the ASX raised concerns about details in the company’s half-year report
- Far had scheduled a shareholder meeting for December 21 to consider a proposed asset sale to Woodside Energy, but has now pushed the meeting until January 21 to assess the buyout proposal in tandem
- Far shares remain suspended and last traded at 1.1 cents per share
Oil and gas explorer Far Limited (FAR) has received a non-binding buyout proposal from private investment fund Remus Horizons.
Remus, which is regulated by the Guernsey Financial Services Commission, intends to make an offer to buy out all Far’s outstanding shares at 2.1 cents each.
According to Remus, this price represents a premium on the cash backing per share, when taking into account Far’s potential upcoming sale of its stake in the Senegal RSSD project to Australian petroleum giant Woodside Energy.
The shares in question have been suspended since September, following the release of Far’s troubling half-year report.
The report stressed the “going concern” of the company’s operations and its desire to sell its stake in the Senegal asset.
Soon after the release of the report, Far shares entered suspension, after the ASX raised concerns about the methods used to evaluate the asset, which originally triggered the auditor to issue a “disclaimer of review opinion”.
The shares have yet to re-enter the market, with the ASX recently stating it will keep the shares off the market until the auditor’s disclaimer is removed.
Despite the shares lingering in suspension, the actual sale of the asset is still in the works, and a general meeting was originally scheduled for December 21 to assess Woodside’s offer.
However, with the Remus buyout now on the table and inextricably tied to Woodside’s offer, Far has postponed the meeting by another month.
With the extra time, the company intends to continue discussions with Remus and assess “the relative merits of the sale alternative and the proposal.”
Far shares remain suspended and last traded at 1.1 cents per share.
