Centrica Welcomes Venture Recommendation Of Its Offer
August 25 2009 - 9:18AM
Dow Jones News
U.K. utility Centrica PLC (CNA.LN) Tuesday welcomed the
recommendation of the board of Venture Production PLC (VPC.LN) to
accept its GBP1.3 billion bid for the U.K. oil and gas
producer.
The offer will become unconditional Thursday, following the
settlement of the purchase of Venture shares announced over the
past few days, Centrica added.
"We are pleased that the Venture board has recommended that its
shareholders accept our offer, in the event that it is declared
wholly unconditional," Centrica Chief Executive Same Laidlaw
said.
Centrica already either owns, has acquired subject to settlement
or has received valid acceptances equivalent to 58.7% of Venture
shares, Centrica said late Monday.
Earlier Tuesday, Venture's board said it was recommending the
845-pence-a-share offer to shareholders, even though it said the
offer still undervalued the company.
Venture had been stiffly resisting the offer that Centrica
launched last month.
Centrica has long been on the hunt for gas resources to make up
for its declining reserve base so as to supply its 15.5 million gas
and electricity customers.
"The deal sees us continuing our investment in the North Sea,
which is good news for our customers and shareholders. It further
reduces our overall exposure to volatile movements in wholesale gas
prices and helps secure U.K. energy supplies," Laidlaw added.
At 1246 GMT, Centrica shares were up 0.7% at 236 pence.
-By Selina Williams, Dow Jones Newswires +44 207 842 9262;
selina.williams@dowjones.com
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