Australia-based Roc Oil approved a $427.7 million all cash takeover offer made by China-based Fosun International Group on Friday.

Roc Oil’s board voted unanimously to approve the deal.

Fosun will pay $0.69 per share on a minimum of 50 percent acceptance, Oil and Gas Journal said.

In April, Australia-based Horizon Oil made an $800 million merger bid for Roc Oil but the deal fell through in August when Horizon decided to not compete with Fosun’s offer.

The per share price for the Fuson deal is comparable to the level Roc shares were trading at before the Horizon offer.

Roc Oil said the company has limited opportunities for growth on its own and that it needs more funding for exploration and development projects.

Roc Oil’s portfolio largely consists of producing assets approaching or in decline.

Roc Oil also said the Fosun deal will provide immediate value and remove risks for shareholders.

South Africa-based investment management firm the Allan Gray Group holds a 20 percent stake in Roc Oil and has also accepted Fuson’s offer.

The acquisition marks Fosun’s entry into the oil and gas sector.


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