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£248m takeover offer for RockRose

Trading company Viaro buying out 20,000bopd producer for £248m with backing from Abu Dhabi ruling family
July 6, 2020

RockRose Energy (RRE) looks set to be taken over in a cash deal handing shareholders a hefty premium on the recent share price.  Like most oil producers, RockRose’s valuation tumbled in March after the oil price crashed, so the sale price of 1,850p or £248m is a return to the level the company was trading at between July and February. The offer price is around two times 2019 cash profits. 

The five-year-old company has production of around 20,000 barrels of oil per day (bopd) in UK and Dutch territory, and has bought several smaller players since listing. The most significant deal recently was the $95m (£76m) purchase of Marathon Oil, completed a year ago.

The buyer is UK-based trading company Viaro, through its subsidiary Viaro Energy.

The RockRose board has backed the deal, with executive chairman Andrew Austin saying now was the right time “to move on and allow RockRose to continue to flourish with new backers”. Mr Austin has committed to voting his 27 per cent stake for the deal.  RockRose had over $300m in cash and cash equivalents as of 31 December, and no debt. 

Viaro is funding the deal through a £500m loan from the ruling family of Abu Dhabi, split into two £250m blocks.