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SOCO will not bid for Ophir Energy after original proposal rejected

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Staff Writer |
Ophir Energy
Acquisition   SOCO confirms that it does not intend to make an offer

SOCO has for some time believed that a combination with Ophir would create significant and long-term value for shareholders in both companies.

On 17 January 2019, SOCO tabled a formal proposal to Ophir’s Board regarding an all-share combination of SOCO and Ophir.

The board of Ophir unanimously rejected SOCO’s proposal on 22 January 2019.

In light of Ophir’s subsequent announcement of a recommended all cash offer of 55 pence from PT Medco Energi Global, SOCO believes that a share-based combination with Ophir would currently be challenging to execute and so would represent an unacceptable level of risk for SOCO shareholders.

SOCO remains committed to its strategy of shareholder value creation through sustainable cash returns to shareholders and growth of the business.

The SOCO team, which has a track record of delivering shareholder value through asset acquisition and monetisation, delivering large scale developments, and returning capital to shareholders, evaluates M&A opportunities with reference to its strict strategic, financial and operational criteria.

Any transaction will be pursued only if it is determined by SOCO’s board to be in the best interest of shareholders.

As a result, SOCO confirms that it does not intend to make an offer for Ophir and is consequently bound by the restrictions set out under Rule 2.8 of the Code.

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