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Roc Oil: Fosun's offer is better than Horizon Oil's

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Staff writer ▼ | August 5, 2014
Australia's Roc Oil accepted a A$474 million ($441 million) takeover offer from Chinese conglomerate Fosun International, saying it was better than its plan to merge with Horizon Oil Ltd.
Roc Oil
Chinese takeover   Australian company likes Chinese company
A takeover of Roc will give Fosun its first oil assets, with stakes in Australia, China, Malaysia and the UK North Sea. Fosun has offered A$0.69 a share, a 10 percent premium to Roc's close last Friday and a 23 percent premium to Roc's share price the day before it announced it had received a tentative takeover proposal from an unidentified party.

"The proposal to purchase all of Roc's shares for cash is superior when considered against the alternative merger of equals with Horizon and offers a significant premium to share price performance," Roc Chairman Mike Harding said in a statement.

The agreement with Fosun, which is subject to Australian foreign investment approval, comes after Roc's top shareholder, Allan Gray, fought to block the Horizon deal. He wanted to make the company hold a vote on the deal but that was not required under Roc's constitution. The fund manager failed to win enough shareholder support to change Roc's constitution to require a vote on an all-scrip merger.

"The reason for the company entering into the Bid Implementation Agreement, and the Proposed Transaction, is to enable the group to enter the upstream oil & gas industry and acquire oil & gas assets," Fosun said in a statement to the Hong Kong stock exchange on Monday.