- Russian energy company Lukoil’s proposed acquisition of FAR (FAR) will not proceed to a legally binding offer
- Lukoil’s initially proposed to acquire FAR for 2.2 cents per share in cash, valuing the company at roughly $220 million
- The offer postponed FAR’s decisions regarding two other acquisition proposals from Woodside (WPL) and Remus Horizons
- Company shareholders will now meet on April 15, to consider approving the proposed asset sale to Woodside
- FAR shares have been suspended from trading on the ASX since September 2020, when they last traded at 1.1 cents per share
Russian energy company Lukoil’s proposed acquisition of FAR (FAR) will not proceed to a legally binding offer.
On February 17, 2021, FAR received a conditional, non-binding, indicative proposal from Russian energy company, PJSC Lukoil.
Lukoil proposed to acquire all shares in FAR for 2.2 cents per share in cash, valuing the company at approximately $220 million.
The offer from Lukoil complicated matters for FAR, which was already considering different offers from two separate entities at the time.
The first offer was the proposed sale of its interest in the Rufisque Offshore, Sangomar Offshore, and Sangomar Deep Offshore (RSSD) joint venture project to the RSSD project’s ASX-listed operator, Woodside (WPL). The second offer was an incomplete, non-binding takeover bid from Remus Horizons.
In order to clarify the status of the Lukoil proposal, FAR chose to postpone its scheduled shareholders meeting, which was set for February 18.
Lukoil’s initial proposal was not legally binding and was subject to conditions including targeted, timely corporate due diligence on FAR and final approval from Lukoil’s Board of Directors. As such, there was never a guarantee that the Lukoil proposal would move forward or be accepted.
Since then, Lukoil has now advised that its proposal to acquire the company will go no further, and will therefore not proceed to a legally binding offer.
FAR’s rescheduled shareholders meeting is set for April 15, 2021, during which the company will consider approving the sale of its interest in the Senegal RSSD project to Woodside.
At this time, FAR’s directors are still in favour of supporting the sale to Woodside. However, the company may reconsider their stance if a comparable alternative offer, such as a complete takeover bid from Remus Horizons, emerges in the near future.
FAR shares have been suspended from trading on the ASX since September 2020, when they last traded at 1.1 cents per share.