leadf
logo-loader
viewMosman Oil and Gas Ltd

Mosman makes move to buy MEO Australia

"The combined resources of Mosman and MEO will deliver benefits to both shareholder groups and establish an expanded company as an attractive investment proposition for investors," said chairman John Barr.

agreement_greyscale350_54894fef9aaa2.jpg

Mosman (LON:MSMN) has made an opportunistic move to acquire ASX listed MEO Australia (ASX:MEO).

It has made a paper offer, one Mosman share for every 20 MEO shares, which is worth about £6.5mln or A$12.4mln.

MEO, a partner of AIM peer Kea Petroleum (LON:KEA), owns a portfolio of exploration, appraisal and development assets in Australia and New Zealand.

Mosman says the combination of Mosman and MEO will deliver benefits to both sets of shareholders as the merged group would be an attractive investment proposition.

It adds that by being listed on AIM, Mosman has exposure to one of the largest global investment communities and the company has created considerable investment interest since it listed earlier in 2014.

MEO is already the subject of a takeover bid but, according to Mosman, a separate dispute between the rival bidder and its major shareholder raises questions over that deal going through.

Evoworld Corporation owns just shy of 20% of Neon Energy, which has already entered into a merger agreement with MEO. The shareholder has, however, called for a general meeting in order to remove Neon’s management team.

John Barr, Mosman’s executive chairman, said: “The Mosman directors believe that there is a strong possibility that the proposed merger between MEO and Neon will not occur, and that the takeover bid [from Mosman] affords the MEO shareholders a viable alternative.

“The Mosman directors believe that the combined resources of Mosman and MEO will deliver benefits to both shareholder groups and establish an expanded company as an attractive investment proposition for investors."

Quick facts: Mosman Oil and Gas Ltd

Price: 0.15 GBX

AIM:MSMN
Market: AIM
Market Cap: £3.97 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Mosman Oil and Gas Ltd named herein, including the promotion by the Company of Mosman Oil and Gas Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Mosman Oil and Gas leveraging strategic alliance for project development

Mosman Oil And Gas (LON:MNMN) technical director Andy Carroll updates Proactive Investors on the energy company’s strategic alliance with Baja Oil and Gas LLC and developments across the two projects that comprise the partnership, Champion and Challenger. “One of the big positives on...

on 25/9/18

2 min read