Venture Admits Defeat And Recommends Centrica Bid To Holders
August 25 2009 - 6:47AM
Dow Jones News
U.K. oil and gas producer Venture Production PLC (VPC.LN)
admitted defeat in its defense against a hostile GBP1.3 billion
takeover bid from utility Centrica PLC (CNA.LN) and recommended
that all shareholders accept the offer.
Major Venture shareholders Larry Kinch and ArcLight Capital
Partners, who previously said Centrica's offer was too low, have
decided to sell their combined 19.2 million shares, equivalent to
12.8% of Venture's share capital, the company said.
Centrica already either owns, has acquired subject to settlement
or has received valid acceptances equivalent to 58.7% of Venture
shares, Centrica said Monday evening.
"The board of Venture continues to believe that Centrica's final
offer substantially undervalues Venture. However, the board
recognizes that, in the event that the offer is declared wholly
unconditional, Centrica will have control of Venture," and any
shareholders who do not sell run the risk of holding a minority
stake in a de-listed company, said Venture in a statement.
Venture's statement represents a victory for Centrica, which has
long been on the hunt for gas resources to make up for its
declining reserve base. Venture's management said Centrica's offer
of 845 pence per share substantially undervalued the company, which
has growing output and a strong financial position.
However, Centrica's management seem to have judged correctly
that a majority of Venture shareholders would rather pocket the
cash today than hold out for the possibility of a higher price in
the future.
-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; james.herron@dowjones.com
Venture Production (LSE:VPC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Venture Production (LSE:VPC)
Historical Stock Chart
From Jul 2023 to Jul 2024