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Emerald weighing takeover by OGH

2nd August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Petroleum explorer Emerald Oil and Gas has signed an implementation deed with fellow-listed Ochre Group Holdings (OGH), which could result in a merger.

Emerald told shareholders on Friday that they would likely receive one fully paid ordinary share in OGH in exchange for each 2.75 ordinary full paid shares held in Emerald.

Based on the 90-day volume-weighted average price of both company’s shares, the offer represented a 12.9% premium to Emerald’s share price.

The proposed scheme of arrangement did not include any terms for the acquisition of the existing unlisted options in Emerald, which totalled some 117.6-million 5c options at April 2014, and 50-million 5c options at June 2014.

The takeover offer would also be conditional upon OGH raising between A$500 000 and A$1-million through a share placement, priced at 4c a share.

OGH is currently Emerald’s largest shareholder, having a 16% interest in the company. The group has a market capitalisation of A$9.57-million, and its main asset is a granted mining lease in the Pilbara region.

Emerald has told shareholders that it would seek advice from an independent expert on the merits of the proposed offer, as its board was currently divided on the matter.

Edited by Creamer Media Reporter

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