Medco will fund the acquisition from its existing cash resources. Credit: nz_willowherb.

Medco Energi Internasional has reached a £390.6m ($511.3m) agreement to acquire the entire issued and to be issued ordinary share capital of upstream oil and gas firm Ophir Energy.

Medco will fund the acquisition from its existing cash resources and the proceeds of a credit agreement entered with Standard Chartered Bank.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

It will be implemented via a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006.

Earlier this month, Ophir Energy received a takeover offer from Medco.

Medco director and CEO Roberto Lorato said: “The enhanced scale, diversification and growth opportunities of this acquisition would create benefits for employees, partners and host countries, and further strengthens Medco’s position as a leading independent oil and gas player in South-East Asia.

“The enhanced scale, diversification and growth opportunities of this acquisition would create benefits for employees, partners and host countries.”

“In Medco’s view, the combined business will hold a more balanced regional portfolio of producing and development assets, better able to withstand macroeconomic volatility, and will have meaningful production and cash flows to improve Medco’s credit position and the ongoing development of the portfolio.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Medco reserves the right to reduce the consideration payable for each Ophir share under the terms of the acquisition, in the event any dividend, distribution or other return of value in respect of the shares is declared, paid or made on or after the announcement date.

Ophir Energy chairman Bill Schrader said: “The Ophir board believes that the Medco offer reflects the future prospects of Ophir’s high-quality assets, as reflected in the premium of 65.7% to the closing price of 33.20p per Ophir Share on 28 December 2018.”

The acquisition is subject to the approval of the scheme shareholders and the sanction of the court.