After several informal takeover approaches, Exillon Energy (EXI) has appointed Goldman Sachs to consult on a strategic review of its options, with founder shareholder Maksat Arip, who has a beneficial holding of 30.2 per cent, chief among potential buyers for the Russia-focused oil & gas producer.
Interest in Exillon was sparked by March's independent reserves update, which increased Exillon's proven and probable (2P) oil reserves by 96 per cent to 520m barrels. The view that Exillon's assets in western Siberia were fundamentally undervalued was given ballast by analysis of a subsequent sale of similar assets conducted between LUKOIL and Hess Corp.
The London Takeover Panel has granted dispensation from certain requirements of the formal sale process, including a requirement to complete any deal within the standard 28-day deadline. Mr Arip has said that he intends to remain at arm's length while the process is being carried out. But his participation must be in doubt given that the UK High Court has frozen his assets after Kazakhstan Kagazy, a London-based paper company, accused Mr Arip of defrauding investors to the tune of $90m (£56m). Mr Arip is challenging the court order and denies all accusations.
