Oil and exploration firm Energy Africa said on Thursday it was in talks with buyers interested in roughly 34,7% of the company, the only portion of the company’s shares not currently held by Malaysian state oil firm Petronas.
”A number of these interested parties are considering whether or not to proceed with an offer for all or part of Energy Africa’s issued share capital, but there can be no assurance that any such offer will be forthcoming,” Energy Africa said in a statement.
The offshore arm of Petronas, which already controls almost two-thirds of Energy Africa, in early September offered R1,6-billion for the roughly one-third of the Energy Africa it does not already own. But the offer was rejected as too low by Energy Africa.
In the latest twist to a bitter fight for the tiny oil operator, the South African group said it had received written commitments from institutional investors with 30,1% of minority shares to reject the Malaysian company’s bid.
The Petronas offer needs the approval of 90% of the minority stake — or around 34,7% — to succeed.
Petronas said in a separate statement on Thursday its offer of R43,75 a share was final and unconditional. It said the offer would remain open until November 12.
Energy Africa directors have put up a spirited fight, splashing newspapers with advertisements urging shareholders to spurn the Petronas offer.
Some South African investors are unhappy about losing what they say is the only listed pan-African oil and exploration firm. But not all are against the deal — some of the country’s biggest fund managers said they sold their shares immediately believing it was a good price.
Petronas said it believed there would be no alternative offer.
”The offer was specifically structured as a final offer to give certainty to Energy Africa shareholders and to avoid the price and other speculation that invariably accompanies transactions of this nature,” said the Malaysian group.
Shares in Energy Africa closed flat at the R45 level they have stayed near since the offer was made.
The South African group has operations across the continent and in the North Sea, and produces about
22 000 barrels-per-day of crude oil.
The Malaysian national oil company became one of South Africa’s biggest foreign investors when it bought Engen in 1998. It has since invested about five billion rand in the group and has made no secret of its ambition to take over Energy Africa. – Reuters