02/05/2018 - 14:02

Risco plans $30m Tap Oil takeover

02/05/2018 - 14:02

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After overhauling Tap Oil’s board earlier this year, major shareholder Risco Energy Investments has made a $29.8 million takeover offer for the Perth-based oil and gas company.

Risco plans $30m Tap Oil takeover
The company has interests in assets in the Carnarvon Basin off the coast of Western Australia.

After overhauling Tap Oil’s board earlier this year, major shareholder Risco Energy Investments has made a $29.8 million takeover offer for the Perth-based oil and gas company.

Tap announced today it has received a cash offer from Singapore-based Risco, which values the company’s shares at 7 cents each.

The offer provides a 14.8 per cent premium on the company’s closing price yesterday, and a 27.9 per cent premium on the 30-day volume-weighted average price.

Tap’s board has recommended shareholders take no action while the board reviews the offer.

The company has interests in assets in the Carnarvon Basin off the coast of Western Australia and in the northern Gulf of Thailand.

Risco, which already has a 25.11 per cent stake in Tap, said the offer is unconditional.

“The offer provides shareholders with an opportunity to realise cash for their shares in Tap at a premium to the prices at which those shares have traded on the ASX over the five months prior to the announcement of the offer,” Risco chief executive Tom Soulsby said.

Tap has also announced the appointment of former business development manager Damon Neaves as a non-executive director.

Mr Neaves worked at the company between 2003 and 2008 and currently works in an advisory role with private company Finder Exploration.

The takeover offer comes after Tap announced the resignation of four directors in February, days before a planned general meeting, which had been called after Risco requisitioned a series of resolutions to remove three directors.

Risco’s nominations of Chris Newton and Govert van Ek were appointed to the board at the same time as the resignations.

Shares in Tap finished up 18 per cent at 7.2 cents each today.    

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