StockMarketWire.com - Oil giant Shell has made a proposed offer of £992.4m for Mozambique-focused Cove Energy.
Shell's proposed 195p per share offer would represent a premium of 73.3% to the closing price of 112.5 pence per Cove share on 4 January, the last business day prior to Cove's announcement of the sale process for the company.
Shell said the proposed offer fits with its strategic aim to drive forward with its investment programme, to deliver sustainable growth and to provide competitive returns to shareholders.
It adds: "East Africa is a major prospective hydrocarbon province, which has seen a significant increase in exploration activity in recent years.
"Shell already has interests in Tanzania, and the acquisition of Cove would mark Shell's entry into exciting new hydrocarbon provinces in Kenya and Mozambique, with significant potential for new LNG from recent gas discoveries offshore Mozambique, and further complementary exploration positions in East Africa."
At 8:36am:
(LON:COV) share price was +40.38p at 194.88p
(LON:RDSA) share price was +3p at 2306.5p
(LON:RDSB) share price was -0.25p at 2333.25p
Story provided by StockMarketWire.com
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