North Sea-focused oil and gas explorer Ithaca Energy has unveiled a deal to buy rival Valiant Petroleum for £203 million in cash and shares.
The Aberdeen-based firm, which is listed in London and Toronto, said Valiant shareholders will be 307p in cash and 1.33 Ithaca shares for each Valiant share they hold.
The deal, which is subject to approval from Valiant’s shareholders, represents a premium of 37 per cent on the firm’s closing share price on Thursday.
Kevin Lyon, chairman of Woking-based Valiant, said: “The board feels the offer recognises the value in Valiant’s portfolio and provides our shareholders with the opportunity to both realise a proportion of this value in cash today whilst retaining exposure to the enlarged portfolio.”
Ithaca chairman Jack Lee said: “This proposed acquisition represents a significant step forward in the execution of Ithaca’s strategy to build a highly profitable North Sea oil and gas company.
“The combined assets of the two groups have a strong strategic fit, with the acquisition materially increasing and broadening Ithaca’s producing asset base and reserves portfolio.”