UK based Independent energy trading company ‘Viaro Energy’ has made an offer of U$ 308.8 million for the acquisition of the entire issued and to be issued share capital of RockRose Energy
UK based oil and gas company RockRose Energy stated that the boards of directors of Viaro Energy and RockRose are pleased to announce that they have reached agreement on the terms of a recommended all-cash offer under which Viaro Energy will acquire the entire issued and to be issued ordinary share capital of RockRose.
Under the terms of the Acquisition, each RockRose Shareholder will be entitled to receive, in respect of each RockRose Share 1,850 pence in cash.
The Consideration represents:
- a premium of 64 per cent. to the Closing Price of 1,130 pence per RockRose Share on 3 July 2020 (being the last Business Day before the date of this Announcement);
- a premium of 91 per cent. to the volume-weighted average Closing Price of 970 pence per RockRose Share for the three months ending on 3 July 2020 (being the last Business Day before the date of this Announcement);
- a premium of 69 per cent. to the volume-weighted average Closing Price of 1,098 pence per RockRose Share for the six months ending on 3 July 2020 (being the last Business Day before the date of this Announcement); and
- a value of £247,575,824.50 for RockRose’s issued and to be issued ordinary share capital.
Andrew Austin, Executive Chairman of RockRose, commenting on the Acquisition, “After careful reflection, the Board of RockRose has concluded that accepting this offer is firmly in the best interests of our shareholders. It has been an exciting journey since RockRose was founded five years ago. However, for the benefit of all stakeholders, now is the time to move on and allow RockRose to continue to flourish with new backers.”
Francesco Mazzagatti, CEO of Viaro Energy, said, “I am very pleased that the Board of RockRose has recommended our offer for RockRose. We have ambitious growth plans in the UKCS and we believe that RockRose’s producing assets, its staff, its commitment to health and safety, the environment and best in class operational procedures, will be an ideal platform from which to grow our presence in the UKCS. I’m extremely pleased that RockRose’s senior management team has agreed to join us as they share our vision for future growth.”
This represents Viaro Energy’s first acquisition in the UK North Sea.
Viaro Energy intends to seek continuity through maintaining RockRose’s existing business plan, which is to focus on increasing the decommissioning half-life of its assets and to look for opportunities to extend the life of key infrastructure, either through identifying additional development opportunities or third party business, while maintaining operational delivery safely and responsibly.
Source: Nauticus Live