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Qatari firm values Heritage Oil at $1.55bn

By BusinessNews Staff on May 2, 2014

Al Mirqab Capital SPC, a company controlled by Qatar’s royal family, made a cash offer valuing Heritage Oil Plc at £924 million ($1.55 billion).

According to Bloomberg’s Businessweek, the offer of 320 pence a share, recommended by Heritage’s board, was a 25 per cent premium to its Tuesday’s closing price, Heritage said in a statement.

Heritage Wednesday reported a profit of $100.4 million for 2013 on sales of $431.9 million.

Heritage holds stakes in onshore oil fields in Nigeria and exploration rights in Papua New Guinea.

Tony Buckingham, the company’s founder and chief executive officer, will retain a 20 per cent holding and serve as an adviser for at least five years.

“The independent committee of Heritage’s board believes that the offer represents an attractive and certain value,” Heritage Chairman, Michael Hibberd said.

The shares jumped as much as 23 per cent to 317.9 pence in London intraday trading, the most since August 8, 2012, and changed hands at 313.2 pence as of 10 a.m. local time.

Heritage and its local partner are developing the OML 30 block in Nigeria, where production has reached more than 50,000 barrels a day, the company said yesterday.

[This Day]

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