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Shares in Nido Petroleum Limited (ASX:NDO) jumped yesterday after the oil and gas explorer and producer scored a $113 million cash takeover offer from Thailand’s Bangchak Group.
The South East Asian-focused explorer’s board have unanimously backed the 5.5 cent per share offer and recommended shareholders accept the bid.
The price is a 34 per cent premium to Nido’s stock ahead of the announcement and a 60 per cent premium to the three month volume-weighted average price.
Nido’s major shareholder Petroleum International Investment Corporation has a 19.66 per cent stake in the company and has already inked a deal to divest its interest to Nido’s suitor.
The takeover remains conditional on securing acceptance from Australia’s Foreign Investment Review Board and 90 per cent of shareholders.
Shares in Nido Petroleum soared 24.39 per cent to close at $0.051 following the announcement.
Nido Petroleum reported a net profit of $20 million in the full 2013 calendar year.
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