- Shareholder in oil and gas explorer FAR Limited (FAR), Meridian Capital International Fund (MCIF), rejects a takeover bid offer made by Samuel Terry Asset Management
- Samuel Terry made a conditional off-market takeover offer bid to acquire all the issued fully paid ordinary shares in FAR for 45 cents per share
- A 19.28 per cent shareholder in FAR, MCIF has rejected the offer saying it doesn’t offer shareholders any benefit from the US$55 million contingent payment for the sale of its interest in the Senegal Rufisque Offshore, Sangomar Offshore, Sangomar Deep Offshore (RSSD) oil and gas project
- MCIF has suggested FAR directors convene a shareholders meeting and FAR is investigating whether it can appropriately do so, expecting to update shareholders once the investigation is complete
- Shares in FAR were trading 8.55 per cent higher at 63.5 cents.
A major shareholder in oil and gas explorer FAR Limited (FAR), Meridian Capital International Fund (MCIF), has rejected a takeover bid offer made by Samuel Terry Asset Management.
Samuel Terry made a conditional off-market takeover offer bid to acquire all the issued fully paid ordinary shares in FAR for 45 cents per share.
FAR responded stating the offer undervalued FAR’s shares having regard to the company’s cash backing and the right of FAR to receive a US$55 million (A$77.08 million) contingent payment from Woodside Energy (WPL) for the sale of its interest in the Senegal Rufisque Offshore, Sangomar Offshore, Sangomar Deep Offshore (RSSD) oil and gas joint venture, as well as its existing oil and gas interests.
A 19.28 per cent shareholder in FAR, MCIF has rejected the offer with the view it doesn’t offer shareholders any benefit from the RSSD contingent payment.
MCIF says it remains committed to its investment in FAR subject to various legal conditions, and has suggested FAR directors convene a shareholders meeting to consider a pro-rata distribution of rights to the RSSD contingent payment.
Ideally, Meridan would like such rights traded directly or indirectly on a listed and tradeable exchange.
It is MCIF’s view that doing so would help preserve the value of the RSSD contingent payment for existing shareholders on the relevant record date.
All other assets including FAR’s cash and oil and gas interests would remain within FAR.
FAR is investigating whether it can appropriately do so and expects to update shareholders once the investigation is complete.
Shares in FAR were trading 8.55 per cent higher at 63.5 cent at 1:21 pm AEDT.