Cooper Energy Ltd has hit back at share price valuations for its takeover target Incremental Petroleum Ltd, claiming it is not "realistic".
Cooper Energy Ltd has hit back at share price valuations for its takeover target Incremental Petroleum Ltd, claiming it is not "realistic".
Earlier this month, an evaluation by KPMG, as part of Incremental's target statement, assessed the company's share price value of between $3.39 and $4.18.
Cooper today said the assessed valuation by KPMG is "extremely unlikely" to be realised.
"The valuation is based on assumptions that are not realistic in today's market, including a longer term Brent crude oil price of US$105/barrel compared with the current price of below US$70/barrel," Cooper said.
Additionally, Cooper said the assessed valuation is at a premium of between 248 per cent and 329 per cent to the pre-bid announcement of Incremental shares of 97.5c.
At 13:23 AEDT, Incremental's share price rose 5c to 85c while shares in Cooper gained 2c to 30.5c.
Cooper is offering either 3.1 of its shares for every Incremental share, or 50 cents cash and 1.9 shares for each Incremental share.
Cooper holds a 19.47 per cent stake in Incremental though an institutional acceptance facility and on-market purchases.
However Incremental has previously said 13.5 per cent of the company's shareholders have singed an undertaking not to accept the offer.
