Regal board backs £77m offer from Energees

OIL explorer Regal Petroleum said yesterday it would recommend shareholders accept a £77m ($121.5m) takeover offer from Energees Investments as Cyprus-based Heamoor said it was considering making a competing bid.

Ukraine-focused Regal said the offer price was 24p a share, a 30 per cent premium to the company’s closing share price of 18.5p on 9 December.

The board “intends unanimously to recommend shareholders accept the proposed offer,” said Keith Henry, chairman of Regal. “The offer provides greater certainty of value to Regal shareholders during this difficult time for the company.”

Following the announcement, Energees Investments said it was considering its options to deliver a more attractive cash offer, as well as a potential combination of Regal assets with Ukrainian gas producer Geo-Alliance Oil-Gas.