The board of Salamander Energy (SMDR) has backed a takeover offer from Africa-focused oil and gas explorer Ophir Energy (OPHR). In an all-share deal, Salamander's shareholders are to receive 0.5719 Ophir shares for each share currently held. The deal effectively values Salamander at 115.9p a share, representing a reasonable 45 per cent premium to the closing price on the day before news of bid talks first emerged in late October.
The share price of Salamander pulled back last week when it was revealed that a consortium led by Spain's CEPSA would not proceed with a rival bid. The consortium had planned to offer 121p a share as well as a contingent value right of up to 24p per share depending on the success of Salamander's forthcoming exploration drilling in the Gulf of Thailand.
Ophir's offer has also been made on the condition that Salamander cancelled a deal previously struck with Malaysia's SONA Petroleum Berhard for the sale of a 40 per cent interest in two Thai oil fields.
