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Aurora Oil & Gas board recommending A$1.8bn Baytex offer

Aurora Oil & Gas board recommending A$1.8bn Baytex offer

Photo by Bloomberg

15th April 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The board of ASX- and TSX-listed takeover target Aurora Oil & Gas has put its weight behind a takeover offer from Canada’s Baytex Energy Corporation.

In February, Baytex launched a A$1.8-billion takeover offer for Aurora, offering shareholders A$4.10 in cash for every share held.

The offer represented a 56% premium to the last closing price of Aurora’s shares on the ASX, on February 6.

An independent expert had evaluated the proposed transaction, and concluded that the scheme was both fair and reasonable, and in the best interest of Aurora shareholders.

Aurora’s directors told shareholders this week that the board had considered the advantages and disadvantages of the offer, and were now unanimously recommending that shareholders accept the proposal, in the absence of a superior offer.

Aurora currently had about 80 000 acres of land across the Eagle Ford Shale, in the US, including 22 000 net acres within the liquid-rich zones on the trend. The company has over 380 wells producing on its acreage.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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