Egdon Resources PLC on Wednesday said it has agreed to an all-cash takeover offer from Petrichor Partners LP.
The oil and gas explorer and producer said Egdon shareholders will receive 4.5 pence per share, valuing the entire company at about GBP26.6 million. The offer price is a 96% premium to Tuesday’s closing price of 2.3p per share.
Egdon shares rose 87% to GBP4.30 pence each in London on Wednesday afternoon.
The company’s board said it intends to unanimously recommend the offer to shareholder’s at its upcoming general meeting.
Petrichor is a wholly-owned subsidiary of HEYCO Energy Group. The ultimate parent company of Heyco Energy and Petrichor is Explorers Petroleum Corp, which is controlled by George Yates.
“HEYCO Group believes the timing is right to acquire Egdon and take it private, as Heyco Group believes that the public market continues to undervalue its assets, including the impressive Wressle development,” HEYCO said.