Sunov up bid for Novus, Medco undeterred<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The bidding process for Australia's oil and gas producer Novus
\nPetroleum is heating up, as Australian-based Sunov Petroleum Pty
\nsaid it would raise its bid for the company to counter a takeover
\nbid by Indonesia's PT Medco Energi Internasional.<\/p>\n
In a statement to the Australian Stock Exchange (ASX) on
\nThursday, Sunov said it would raise its bid to A$341 million
\n(around US$250 million), or A$1.85 per share, from A$326 million,
\nor 1.77 per share.<\/p>\n
Sunov was jointly set up by Novus managing director Bob
\nWilliams and Hong Kong-based Crosby Capital Partners.<\/p>\n
\"By accepting the Sunov offer, Novus shareholders would
\nreceive a substantial premium, above the price of Novus shares
\ntraded in the period prior to the announcement of the bid by
\nMedco last year,\" said Sunov director Ilyas Khan in the
\nstatement.<\/p>\n
The Jakarta-listed Medco had earlier offered to buy 90 percent
\nof Novus shares on issue at A$1.74 each, and has extended its bid
\nfor the sixth time without increasing its offer.<\/p>\n
Sunov said that its takeover offer was the best offer
\navailable: the highest price and the least conditional, compared
\nto those offered by Medco.<\/p>\n
\"The Medco offer of A$1.74 per share remains highly
\nconditional and Medco has just extended its offer without
\nincreasing its price,\" said Khan.<\/p>\n
Sunov has appointed Macquarie Bank Ltd. to advise in the
\ntakeover plan, while Medco is being advised by UBS AG, and Novus
\nby Merrill Lynch.<\/p>\n
In a reply to Sunov's new bidding price, Medco finance
\ndirector Sugiharto told The Jakarta Post that the company was in
\nthe process of evaluating whether to raise its bid or to back
\ndown from it.<\/p>\n
\"We are still evaluating our stance. We have until May 11 to
\ncome up with a new decision,\" said Sugiharto.<\/p>\n
In January, Medco said it had prepared three plans to respond
\nto any rival offers: maintaining its offer of $1.74 per share
\nwhile reducing the size of shares to be acquired; matching the
\nrival offer but with different terms, or offering a higher bid.<\/p>\n
Elsewhere, Novus chairman David Blair said in a statement to
\nthe ASX that the offers from Medco and Sunov were still below the
\nprice valued by independent appraiser Grant Samuel & Associates,
\nwhich valued Novus shares at between A$1.96 and $2.75 a share.<\/p>\n
\"While Sunov's revised offer is below Grant Samuel's most
\nrecent valuation range, the independent directors are mindful
\nthat nearly four months has passed since Medco's offer was
\nannounced,\" said Blair.<\/p>\n
Medco -- which was founded by businessman-turned-politician
\nArifin Panigoro -- was anxious to acquire Novus as the
\ncompany-owned natural gas reserve in Brantas, East Java, was
\nproducing more gas over the last eight quarters to reach 64
\nmillion cubic feet per day (MMSCFD), or a gross average of 54
\nMMSCFD.<\/p>\n
Medco once said it would switch to being a gas producer rather
\nthan an oil producer, due to the continual decline in its oil
\nreserves lately.<\/p>\n
The company is reportedly planning to obtain some shares in
\nKangean oil and gas block in East Java from energy firm BP
\nIndonesia, a local unit of British-American energy giant, if it
\nfails to acquire Novus.<\/p>\n
Sugiharto declined to comment on the plan.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/sunov-up-bid-for-novus-medco-undeterred-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }