The boards of Medco, Medco Global and Ophir have reached agreement on the terms of a recommended acquisition pursuant to which Medco Global will acquire the entire issued and to be issued ordinary share capital of Ophir Energy.

The Acquisition values the entire issued and to be issued share capital of Ophir at approximately £390.6 million.

The Acquisition represents a premium of approximately:

• 65.7 per cent. to the closing price of 33.20 pence per Ophir Share on 28 December 2018 (being the last Business Day before the announcement of Medco’s possible offer for Ophir);
• 61.2 per cent. to the volume weighted average share price for the one-month period ended 28 December 2018 (being the last Business Day before the announcement of Medco’s possible offer for Ophir) of 34.13 pence per Ophir Share; and
• 43.3 per cent. to the volume weighted average share price for the three-month period ended 28 December 2018 (being the last Business Day before the announcement of Medco’s possible offer for Ophir) of 38.38 pence per Ophir Share.

The cash consideration payable by Medco Global under the terms of the Acquisition will be funded from existing cash resources of Medco and Medco Global and the proceeds of a credit agreement entered into between Medco Global and Standard Chartered Bank for the purposes of the Acquisition.

Commenting on the Acquisition, Roberto Lorato, Director and Chief Executive Officer of Medco, said:
“Medco is pleased to have reached agreement to acquire Ophir and its portfolio of high quality oil and gas assets. The enhanced scale, diversification and growth opportunities of this Acquisition would create benefits for employees, partners and host countries, and further strengthens Medco’s position as a leading independent oil and gas player in Southeast Asia. In Medco’s view, the combined business will hold a more balanced regional portfolio of producing and development assets, better able to withstand macroeconomic volatility, and will have meaningful production and cash flows to improve Medco’s credit position and the ongoing development of the portfolio. Medco believes that the compelling strategic and financial logic of this transaction will create value for shareholders, employees and other stakeholders while offering an attractive upfront premium for Ophir.”

Commenting on the Acquisition, Bill Schrader, Chairman of Ophir, said:
“We are pleased to announce a recommended transaction with Medco. The transaction delivers upfront value in cash to Ophir Shareholders for the strategy that the Ophir Directors set out in September 2018. The Ophir board believes that the Medco offer reflects the future prospects of Ophir’s high-quality assets, as reflected in the premium of 65.7 per cent. to the closing price of 33.20 pence per Ophir Share on 28 December 2018. Consequently, the Ophir board intends to recommend unanimously the transaction to Ophir Shareholders.

On behalf of the Ophir board, I would like to take this opportunity to thank our employees and partners whose hard work and dedication have helped build Ophir since its inception in 2004 into an independent upstream oil and gas exploration and production company, with a diversified portfolio of high quality producing and exploration and appraisal assets.”

Link to MedcoEnergi Indonesia country page   l   Link to Ophir Energy Indonesia country page