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Petroleum industry

Medco Energi Internasional Secures Approval for Novus Petroleum Takeover

Strategic Insights

— 1 min read

Asian oil and gas giant Medco Energi Internasional has received clearance from the Australian government to proceed with its A$326 million takeover bid for Novus Petroleum Ltd, a significant energy firm in Australia. The acquisition will increase Medco's average oil and gas production by 21 percent, marking a pivotal shift towards becoming a gas producer. The deal's timeline has been extended to Feb. 24, allowing Novus shareholders more time to decide on the offer.

Key Takeaways:

  • Medco Energi Internasional's takeover bid for Novus Petroleum Ltd has been approved by the Australian government.
  • The acquisition is valued at A$326 million and is expected to boost Medco's average oil and gas production by 21 percent.
  • Medco aims to transition into a gas producer, driven by the decline in its oil reserves.
  • The offer price of A$1.74 per share has been challenged by a rival bid from a consortium consisting of Novus chief executive Bob William and Hong Kong-based Crosby Capital Partners at $1.77 per share.
  • An independent valuer, Grant Samuel & Associates, has valued Novus shares at between A$1.96 and $2.75 per share.
  • The acquisition timeline has been extended to Feb. 24 to give Novus shareholders more time to decide on the offer.
  • The Commonwealth Government's foreign investment policy has no objections to the takeover, as advised by the Treasurer of the Commonwealth of Australia.
  • Novus Petroleum Ltd's CEO, Bob William, is involved in a rival bid for the company.

Statistics:

  • A$326 million: the value of Medco Energi Internasional's takeover bid for Novus Petroleum Ltd.
  • 21 percent: the expected increase in Medco's average oil and gas production.
  • February 5, 2005: the date cited in Medco Energi Internasional's statement as the deadline for the takeover to comply with the Commonwealth Government's foreign investment policy.
  • A$1.74: the offer price per share in Medco Energi Internasional's takeover bid.
  • A$1.77: the offer price per share in the rival bid from a consortium consisting of Novus chief executive Bob William and Hong Kong-based Crosby Capital Partners.
  • A$1.96 to $2.75: the estimated value per share of Novus Petroleum Ltd according to Grant Samuel & Associates, the independent valuer.

Sources:

  • (ANTARA) 09-02 2038, "Medco: Australian government approves A$326 m takeover of Novus Petroleum".
  • Medco Energi Internasional's statement to the Australian Stock Exchange.

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