Novus shareholders told to accept Medco new offer

Publicly listed oil and gas firm PT Medco Energi International Tbk increased its cash offer for all the issued ordinary shares in Novus Petroleum Limited to A$1.90 per share, up from its previous offer of A$1.74 per share.

The new offer from Medco is higher than its rival bidder Sunov Petroleum Ltd’s offer of A$1.85 a share.

"We believe that our revised cash offer of A$1.90 per Novus share represents full and fair value for Novus' shareholders while remaining value enhancing for our shareholders" Medco CEO Hilmi Panigoro said in a statement.

The independent directors of Novus noted Tuesday that they believe that the revised Medco Energi offer is a superior offer to that of rival bidder Sunov.

The independent directors therefore recommend that Novus shareholders accept the revised Medco offer. The directors have also withdrawn their recommendation of the Sunov offer.

Last December, Medco launched an off-market takeover bid for all the issued ordinary shares in Novus, for A$1.74 per share. This offer values the equity in Novus at A$326 million on a fully diluted basis.

However, consultancy firm Grant Samuel & Associates Pty. Ltd. has valued Novus in the range of A$1.96 to A$2.75 per share and concluded that the Medco offer is neither fair nor reasonable.

Medco has extended its offer eight times since launching the unsolicited bid. (Robert)