Two Scottish firms poised to fall into acquisitors’ hands
● Eland Oil & Gas and Murgitroyd both reveal takeover approaches from suitors
Two Scottish companies look set to disappear from the stock market after separate takeover swoops.
Aberdeen-headquartered Eland Oil & Gas, which is focused on interests in Africa, has reached a deal to be acquired by Seplat Petroleum Development Company. The deal values Eland at some £382 million.
The oil and gas explorer has its headquarters in Aberdeen, with additional offices in London, Lagos, Benin City and Abuja. Founded by a group of industry veterans and floated on the Alternative Investment Market (Aim) in 2012, the firm’s activities are focused in West Africa, particularly the Niger Delta region of Nigeria.
Chairman Russell Harvey said: “Eland’s management team has done an excellent job executing our strategy. We have demonstrated a strong track record of operational delivery and value creation in Nigeria from our high-quality assets.
“This offer allows Eland shareholders to benefit from an accelerated and enhanced realisation of this value through a cash offer at a significant premium to the current market value.
“In addition, the business will benefit from the opportunity to become part of a more significant player in the Nigerian oil and gas market. For these reasons, the Eland board unanimously intends to recommend the offer to Eland shareholders.”
George Maxwell, chief executive of Eland, which produced some 9,948 barrels of oil per day in the first half of 2019, added: “This recommended offer from Seplat represents the culmination of a very successful journey by Eland, the management team and all of its stakeholders.
“Eland has, in a period which has seen a significant cyclical downturn in our industry, outperformed most of its peers and the Aim Oil & Gas Index.”
The 166p-a-share cash offer represents a premium of 28.5 per cent to Monday’s closing price. Shares yesterday leapt on news of the takeover approach.
Meanwhile, it emerged yesterday that Murgitroyd Group, Scotland’s only listed firm of patent and trademark attorneys, had received a takeover approach.
The Glasgow-based firm – also quoted on Aim – said in a brief statement that it was in advanced discussions with Sovereign Capital Partners to acquire the business at 675p-ashare in cash, which equates to a value of about £61m.
It added: “The board notes that the proposal is non-binding and accordingly there can be no assurances that an offer will ultimately be made for the company. A further announcement will be made in due course.”
Last month, Murgitroyd said that in the year to 30 November revenue increased 5 per cent to some £22.7m, while pre-tax profit grew to £1.7m from £1.67m in the prior 12 months.
It noted that it now had 18 offices in ten countries, with more than half of its revenue generated in the US.