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Australian coal-bed methane developer Dart Energy Limited (ASX:DTE) has backed a $211.5 million takeover bid from a UK oil and gas producer IGas Energy Plc (LON:IGAS).
The boards of both companies have agreed for IGas to acquire Dart through an Australian Scheme of Arrangement on a share exchange basis.
IGas’s offer price values Dart shares at 18.98 cents, representing a 40.6 per cent premium to Dart’s closing price of 13.5 cents on Thursday.
IGas and Dart expect combining forces will create a market leading onshore UK oil and gas company.
Dart CEO John McGoldrick says the transaction will provide its shareholders with an immediate premium and opportunity to participate in the long-term potential of the UK shale industry.
Shares in Dart Energy fell 7.41 per cent to close at 12.5 cents ahead of the announcement on Friday.
Dart Energy reported a net loss of $30.5 million in the first half of the 2014 financial year.
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