Sunov up bid for Novus, Medco undeterred
Sunov up bid for Novus, Medco undeterred
Rendi A. Witular
The Jakarta Post
Jakarta
The bidding process for Australia's oil and gas producer Novus
Petroleum is heating up, as Australian-based Sunov Petroleum Pty
said it would raise its bid for the company to counter a takeover
bid by Indonesia's PT Medco Energi Internasional.
In a statement to the Australian Stock Exchange (ASX) on
Thursday, Sunov said it would raise its bid to A$341 million
(around US$250 million), or A$1.85 per share, from A$326 million,
or 1.77 per share.
Sunov was jointly set up by Novus managing director Bob
Williams and Hong Kong-based Crosby Capital Partners.
"By accepting the Sunov offer, Novus shareholders would
receive a substantial premium, above the price of Novus shares
traded in the period prior to the announcement of the bid by
Medco last year," said Sunov director Ilyas Khan in the
statement.
The Jakarta-listed Medco had earlier offered to buy 90 percent
of Novus shares on issue at A$1.74 each, and has extended its bid
for the sixth time without increasing its offer.
Sunov said that its takeover offer was the best offer
available: the highest price and the least conditional, compared
to those offered by Medco.
"The Medco offer of A$1.74 per share remains highly
conditional and Medco has just extended its offer without
increasing its price," said Khan.
Sunov has appointed Macquarie Bank Ltd. to advise in the
takeover plan, while Medco is being advised by UBS AG, and Novus
by Merrill Lynch.
In a reply to Sunov's new bidding price, Medco finance
director Sugiharto told The Jakarta Post that the company was in
the process of evaluating whether to raise its bid or to back
down from it.
"We are still evaluating our stance. We have until May 11 to
come up with a new decision," said Sugiharto.
In January, Medco said it had prepared three plans to respond
to any rival offers: maintaining its offer of $1.74 per share
while reducing the size of shares to be acquired; matching the
rival offer but with different terms, or offering a higher bid.
Elsewhere, Novus chairman David Blair said in a statement to
the ASX that the offers from Medco and Sunov were still below the
price valued by independent appraiser Grant Samuel & Associates,
which valued Novus shares at between A$1.96 and $2.75 a share.
"While Sunov's revised offer is below Grant Samuel's most
recent valuation range, the independent directors are mindful
that nearly four months has passed since Medco's offer was
announced," said Blair.
Medco -- which was founded by businessman-turned-politician
Arifin Panigoro -- was anxious to acquire Novus as the
company-owned natural gas reserve in Brantas, East Java, was
producing more gas over the last eight quarters to reach 64
million cubic feet per day (MMSCFD), or a gross average of 54
MMSCFD.
Medco once said it would switch to being a gas producer rather
than an oil producer, due to the continual decline in its oil
reserves lately.
The company is reportedly planning to obtain some shares in
Kangean oil and gas block in East Java from energy firm BP
Indonesia, a local unit of British-American energy giant, if it
fails to acquire Novus.
Sugiharto declined to comment on the plan.