Venture Production: Centrica Offers Unfair Valuation
August 04 2009 - 11:41AM
Dow Jones News
Venture Production PLC (VPC.LN) said Tuesday in an independent
valuation of Venture's assets by Resource Investment Strategy
Consultants that its valuation, which is equivalent to a base case
value of 1,066 pence per share and an upside value of 1,385 pence
per share, clearly supports Venture's view that Centrica's Offer
does not fairly reflect the value of Venture's reserves - let alone
the significant going concern value or the key strategic benefits
that it believes Venture offers to Centrica.
MAIN FACTS:
-The upside valuation also underlines the significant additional
potential available from Venture's existing asset base.
-Venture said it has the financial strength and technical and
operating expertise already in place to continue to unlock this
upside within its portfolio.
-Continues to believe that Centrica's Offer is opportunistic,
taking advantage of uncertainty and weakness in the equity and
energy markets earlier in the year.
-Markets have now improved significantly.
-John Morgan, Chairman of Venture commented: "The independent
RISC valuation clearly supports your Board's view that Centrica's
Offer substantially undervalues Venture. Even the 1,066 pence per
share base case is more than 25% higher than Centrica's Offer. My
message to shareholders remains clear - do not sell your shares on
the cheap to Centrica. Venture is worth substantially more than 845
pence per share. Shareholders should not sign any document which
Centrica or its advisers send to them."
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com
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