Oil and gas firm Hurricane Energy will be delisted from the London stock market after agreeing a £249million sale
Hurricane Energy is set to be delisted from the London Stock Exchange after the oil and gas company accepted a takeover bid worth around £249million.
Ending a four-month sale process, Hurricane said its shareholders should back the offer for up to 12.5p per Prax share.
The energy group’s offer was around 84% higher than the company’s closing price of 6.8p on November 1, when it went on sale.
Takeover bid: In a deal that ended a four-month sale process, Hurricane Energy said its shareholders should back the offer for up to 12.5p per Prax share
Hurricane considered its future in November after an “unsolicited” takeover bid for 7.7 pa of shares.
Key shareholders such as Crystal Amber and Kerogen, who together own 45% of Hurricane, have offered their support for the deal with London-based energy group Prax.
It will see Hurricane shareholders pay £119.8million, or 6p per share, upfront.
This includes 5.19p in the form of a dividend from existing cash and additional funds based on an expected raise next month, with the remainder to be paid by Prax.
The remaining £129.1m, or a 6.48pa share, will be paid based on production milestones reached and potential revenue if Prax builds an upstream branch in the UK. The shares rose 1.1%, or 0.08p, to 6.95p.
