Reading’s Egdon Resources agrees to £26.6m takeover by Petrichor Partners
Reading-based oil and gas firm Egdon Resources reported it is recommending a cash takeover cash offer from Petrichor Partners at 4.5 pence a share.
The offer values the company at around £26.6 million and the price represents a 96% premium to the closing price on Tuesday, May 16 of 2.3p per share.
Shares in Egdon Resources on May 17 jumped around 90 per cent to stand at 4.35p.
Petrichor is a subsidiary of HEYCO, which provides services and capital to oil and gas projects in the US and Europe. Petrichor and Heyco Energy's parent company is Explorers Petroleum Corp, which is controlled by George Yates.
Egdon managing director Mark Abbott said: "We have a high regard for Petrichor and the Heyco Group and they have been very supportive of Egdon over many years, helping us to get to the stage of profitability that we have reached today.
"There is a good deal of mutual respect between our groups, and we are pleased that Egdon will continue its activities in safe hands.
"After considering all strategic options and recognising the challenges, the recommended acquisition provides shareholders with an opportunity to realise a cash exit at an attractive premium," he added.
Egdon said its board intends to unanimously recommend the offer to shareholders at the upcoming general meeting. Shareholders representing a 14% stake in Egdon have already accepted the takeover offer.