09/08/2018 - 13:31

Risco ups Tap offer to $39m

09/08/2018 - 13:31

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Tap Oil major shareholder Risco Energy Investments has increased its takeover offer for the oil and gas company to $38.7 million on the back of BDO’s independent expert valuation.

Risco ups Tap offer to $39m
Tap Oil has assets in the Manora gas field.

Tap Oil major shareholder Risco Energy Investments has increased its takeover offer for the oil and gas company to $38.7 million on the back of BDO’s independent expert valuation.

Tap said today it had received a revised offer from Singapore-based Risco of 9.1-cents-per-share, a 30 per cent increase on its 7 cents offer from May.

Following Risco’s initial proposal, independent expert BDO valued Tap between 7.9 cents and 12 cents, with a preferred valuation of 9.1 cents.

The takeover target said its independent board unanimously recommended the new offer.

“After careful consideration, the independent board committee comprising Mr Damon Neaves and Dr Govert van Ek has concluded that the varied offer is in the best interests of Tap shareholders,” Tap said in a statement to the ASX.

The oil and gas company has now entered into a binding implementation agreement with Risco.

In May, the Tap board said the 7 cents takeover bid undervalued the company and labelled it as opportunistic.

Tap Oil’s largest shareholder Chatchai Yenbamroong, who has a 25.5 per cent stake in the company, advised he would not accept the original offer.

Risco holds a 25.11 per cent stake in the oil and gas company.

Shares in Tap were up 5.8 per cent at 9.1 cents each at 3pm AEDT.

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