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Cove accepts PTTEP
Posted 24.05.2012 12:03:03 av John Bradbury
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The bid war for London-listed Cove Energy looks to be over with the company signalling today that it has agreed to accept a takeover bid from Thailand's PTTEP which values Cove at £1.22 billion insteadof a rival offer from Shell.

PTTEP and Cove announced today that they have reached agreement on an offer– originally made by PTTEP back in February – based on 240 pence per Cove Energy Share – which values Cove at £1,221.4 million.

Shell's offer made in April was lower at 220 pence per share and the PTTEP offer represents a 9.1% premium to the Shellbid.

The offer from PTTEP is also a 55.3% premium to Cove's closing price of 94.0 pence on 12 December 2011, which was the last business day before Cove's announcement of the opening of a data room to parties who had expressed an interest in its Rovuma Project offshore Mozambique.

Today PTTEP said offshore East Africa and the Rovuma basin contain world scale natural gas resources with significant additional potential in the area.

 “Cove and the Rovuma Project Interest represent a strong fit for PTTEP, and the proposed acquisition of Cove is consistent with PTTEP's strategy of leveraging the LNG value chain of the PTT Group,” the Thailand company added.
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