UK's Venture Production rejects Centrica's £1.3 billion offer
11 Jul 2009
UK North Sea independent exploration and production operator Venture Production has rejected an 845 pence-per-share offer from utility Centrica plc, the owner of energy supplier British Gas, for the remaining 71 per cent stake it does not own in Venture.
Centrica had launched a £1.3 billion hostile bid for Venture on Friday, after, it boosted its holding in Venture to about 29 per cent after buying the 5.4 per cent stake owned by private equity firm 3i.
The offer values Venture at 845 pence per share, which is almost double the price of Venture's shares in January before Centrica signalled its interest in the company.
It represents a premium of 7.6 per cent to Friday's closing price.
"We are the leading independent gas producer in the North Sea," said Mike Wagstaff, chief executive of Venture.
"In no way does this offer recognise the strategic position and high quality of our UK gas reserves and resources for which the markets have clearly and consistently established significantly higher values across a number of recent transactions. Our strong financial position enables us to exploit both our existing strategic portfolio and future acquisition opportunities," Wagstaff said.
