OVL, GAIL to outbid Shell and PTT for Cove Energy with $2 bn offer

28 Feb 2012

1

ONGC Videsh Ltd (OVL) the overseas arm of ONGC, and GAIL India Ltd plan to jointly make a $2 billion (Rs9,788 crore) bid for Mozambique-focused Cove Energy, outbidding rivals Royal Dutch Shell and Thailand state-controlled oil and gas group PTT, The Times of India today reported, citing sources.

OVL and GAIL will offer 245 pence-a-share or $2 billion, trumping a 195 pence-a-share offer from Shell - Europe's largest oil and gas company, and a 220 pence-a-share offer from PTT's subsidiary PTT Exploration and Production (PTTEP).

OVL and GAIL's bid will be 20 per cent higher than Shell's and 11 per cent more than PTTEP's.

It is understood that the two state-owned companies have concluded due diligence and are expected to table their bid this week after getting the necessary approvals from the oil ministry.

London-based Cove Energy, formerly known as Lapp Plats plc till it changed its name in July 2009, had hired Standard Chartered Bank and Cenkos Securities for selling itself. Last month it opened a data room for interested bidders.

The explorer, which has a market capitalisation of around $960 million, has interests in oil and gas blocks in onshore and offshore Mozambique, offshore Kenya, and onshore and offshore Tanzania.

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers