Tuesday 5th December 2017
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OG Oil & Gas has extended its partial takeover bid for NZX-listed New Zealand Oil & Gas for a second time, again saying the extra time is to secure regulatory approvals.
The oil and gas division of Ofer Global has more than 43 percent of the Wellington-based company and needs more than 50 percent to cross the minimum acceptance threshold. Today it extended its offer to Jan. 8 "to allow time to obtain the necessary regulatory approvals," the company said in a statement.
Last month OGOG pushed out the offer's closing date by 11 days to Dec. 20, which it also said was to get regulatory approvals, including Overseas Investment Office consent.
The new Labour-led administration has signalled tighter criteria for foreign buyers of some New Zealand assets, with plans to effectively ban the purchase of existing residential housing and expanding the pool of rural land needing OIO approval.
OGOG has offered to acquire up to 67.55 percent of the NZOG shares it does not already hold or control at a price of 78 cents per share, up from the 77 cents per share bid it initially floated. The higher OGOG bid won over NZOG's independent directors who unanimously recommend shareholders accept the revised offer.
NZOG shares recently traded at 70.5 cents.
Ofer Global is a private portfolio of international businesses chaired by Eyal Ofer. The global firm wants to preserve NZOG's exploration opportunities and has named the Barque prospect off the Canterbury coast as too interesting to ignore. If it wins over shareholders it plans to find international partners for the deepwater prospect, which was ranked ninth among the world's top oil and gas targets in a survey presented to a recent petroleum conference in New Zealand.
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