Sweetener puts Risco close to gaining Tap Oil
Summary: The battle for control of Tap Oil appears to be over, with the board of the energy junior swinging behind a sweetened $39 million takeover bid by major shareholder Risco Energy Investments.....
Singapore-based Risco increased its on-market offer to 9.1¢ a share from the 7¢ bid rejected by independent Tap Oil directors last month.
Tap Oil said the revised offer was equal to the preferred valuation of an independent expert’s report.
It said chairman Damon Neaves and fellow independent director Govert van Ek had concluded the deal was in the best interests of shareholders.
Risco holds a 25 per cent stake in Tap Oil. The offer is scheduled to close on August 27, unless it is extended.
The companies plan to release supplementary bidder’s and target’s statements.
Perth-based Tap Oil’s principal asset is a 30 per cent stake in the Manora oilfield in the Gulf of Thailand.
Its shares closed up 0.5¢ at the offer price of 9.1¢.