Sharechat Logo

NZOG takeover subject to scaling after OGOG stake passes 70% upper limit

Tuesday 9th January 2018

Text too small?

OG Oil & Gas's partial takeover of New Zealand Oil & Gas will be scaled after it passed the 70 percent maximum it wanted in its bid to control the local energy explorer and producer. 

In the final days of the offer, OGOG received acceptances taking it to 73.7 percent of fully paid ordinary NZOG shares, passing the upper limit in its partial takeover bid, and meaning "acceptances under the offer in respect of fully paid ordinary shares will be subject to scaling," according to a filing to NZX. OGOG also holds 4.9 million partly paid ordinary shares or 58.8 percent of those notes. The combination gives the global energy group the equivalent of 74.5 percent of NZOG's stock once the partly paid shares are fully paid. 

Those securities are also subject to scaling to ensure "the offer will not result in OGOG holding more than 70 percent of the NZO fully paid ordinary shares," the filing said. 

The offer closed yesterday after OGOG sought two extensions to secure regulatory approval, a hurdle it passed last month. The Ofer Global unit offered 78 cents per share to secure a controlling stake in the New Zealand firm, trumping a rival bid by Zeta Resources, saying it wanted to preserve NZOG's exploration opportunities, especially the Barque prospect off the Canterbury coast. 

OGOG, which held a 4.3 percent stake in NZOG before mounting its takeover, still hasn't declared the deal unconditional. 

NZOG shares last traded at 72 cents, and have gained 15 percent over the past 12 months. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares hit record amidst rebalancing, Comvita and Sky TV gain while Pushpay, A2 drop
NZ dollar heads for 0.5% weekly decline as risk aversion rises
RBNZ's Spencer tipped to stand pat in final review next week, repeat same message
Lyttelton Port rejects union claims as strike planned for next week
Storm CEO Deborah Caldwell buys women's clothing chain from Hallenstein
Govt to invest $5 mln in Northland wharves through regional fund
Veritas shareholders vote in favour of Mad Butcher sale
Failed fashion chain Andrea Moore & Co 'significantly overstated' value of inventory by $3.3M
UPDATE: NZ dairy manufacturer plans to list on ASX to raise up to A$20M for expansion
Bay of Islands Airport terminal upgrade to get $1.7M from govt's provincial growth fund

IRG See IRG research reports