French oil operator Maurel & Prom recommends buyout

FRANCE: Maurel & Prom, a French oil operator that pumps mostly in Africa, recommended that shareholders accept a planned buyout offer from Indonesia’s state oil company Pertamina.

“The board of directors of Maurel & Prom... considered that the offer is in the interests of the company, its shareholders and its holders and its employees” and recommended by a unanimous vote they tender their shares, a company statement said.

At the end of August, Pertamina took a 24.5 per cent stake in Maurel & Prom as a prelude to making a buyout offer. “This project is part of Pertamina’s five strategic pillars implementation to enhance its upstream footprint around the world” and ensure Indonesia’s energy security, Wianda Pusponegoro, Pertamina’s vice-president for corporate communication, said at the time.

The acquisition of Maurel & Prom would help Pertamina expand its footprint in Africa. Already present in Algeria, Pertamina would gain operations in Gabon and Tanzania.

The stake in August was acquired at a price of 4.20 euros ($4.47) per share, plus a complement of 50 cents depending on the evolution of oil prices in 2017, which valued the company at 822 million euros.

France’s AMF financial markets regulator announced late on Friday that Pertamina had submitted to it a draft for a public buyout offer.

It also noted that the offer, the calendar for which was not indicated, would be made under the previous financial terms and that Pertamina did not intend to delist the firm.