Shell's bid for Cove lower than PTT's
- Published: 14 Jun 2012 at 14.28
- Online news: News
Royal Dutch Shell Plc (RDSA) extended its offer to buy Cove Energy Plc, an oil explorer focused on East Africa, without matching PTT Exploration & Production Pcl's higher bid for the firm.
Cove shareholders now have until June 27 to agree to Shell's bid, a second extension after the offer of 220 pence offer was made on April 24. Shell has received 4.8 per cent of the shareholders' acceptances so far, it said on Thursday. On May 23, Thailand's PTT made an offer of 240 pence, valuing Cove at 1.22 billion pounds (US$1.9 billion).
Cove's largest asset is a 8.5 per cent holding in Mozambique's Rovuma Area 1, where a group led by Anadarko Petroleum Corp. (APC) has found as much as 60 trillion cubic feet of recoverable natural gas, or more than six times the United Kingdom's existing reserves. Cove increased its estimate of the find earlier this week, and Mozambique approved PTT’s bid last month.
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