$1.85 Sunov takeover bid wins Novus approval

Bob Williams has won the fight to retain his job and the company he founded after the independent directors of Novus recommended shareholders accept a higher, revised offer from Williams’ Sunov Petroleum.
$1.85 Sunov takeover bid wins Novus approval $1.85 Sunov takeover bid wins Novus approval $1.85 Sunov takeover bid wins Novus approval $1.85 Sunov takeover bid wins Novus approval $1.85 Sunov takeover bid wins Novus approval

Sunov had increased its offer price for Novus Petroleum shares to A$1.85 per share and yesterday the Independent Board of Novus has recommended shareholders accept the offer, in the absence of a higher bid.

Sunov had earlier offered A$1.77 per share, an bid which the Novus Board turned down. The Board had also turned down an offer of A$1.74 per share from Indonesia’s Medco because they were hoping for a bid closer to a recent independent valuation of between A$2 and $2.86 per share.

Novus Directors, David Blair, Jim Hornabrook and Steve Mann, have stated they will accept the Sunov offer and urged the shareholders to do the same. They said the lack of alternative proposals, despite extensive efforts to solicit them, was one of the reasons for the Boards acceptance.

According to Sunov Director Ilyas Khan, “Sunov’s takeover offer is the best offer available and this is reflected in the Independent Directors’ recommendation. [Our] offer provides the greatest certainty and value for Novus shareholders.”

“The Medco offer of A$1.74 per share remains highly conditional and Medco has just extended its offer for the sixth time with increasing its price. We urge Novus shareholders to accept our offer without delay,” added Khan.

In a statement Sunov stated the company’s offer represents a 50.4% premium to the volume weighted price of Novus shares in the 12 months prior to the Medco bid and is an A$0.11 premium to the price being offered by Medco Energi (Australia) Pty Ltd.

Williams is backed in Sunov by Hong Kong-based Crosby Capital Partners. Sunov has already agreed if its bid is successful it will onsell to Santos its minor equity positions in the Cooper Basin and Indonesia for $202 million.


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