NZ Oil & Gas takeover subject to scaling as OGOG stake passes 70% upper limit
OG Oil & Gas's partial takeover of New Zealand Oil & Gas will be scaled after it passed the 70 percent maximum it wanted in its bid to control the local energy explorer and producer.
In the final days of the offer, OGOG received acceptances taking it to 73.7 percent of fully paid ordinary NZOG shares, passing the upper limit in its partial takeover bid, and meaning "acceptances under the offer in respect of fully paid ordinary shares will be subject to scaling," according to a filing to NZX. OGOG also holds 4.9 million partly paid ordinary shares or 58.8 percent of those notes. The combination gives the global energy group the equivalent of 74.5 percent of NZOG's stock once the partly paid shares are fully paid.
Those securities are also subject to scaling to ensure "the offer will not result in OGOG holding more than 70 percent of the NZOG fully paid ordinary shares," the filing said.
The offer closed yesterday after OGOG sought two extensions to secure regulatory approval, a hurdle it passed last month. The Ofer Global unit offered 78 cents per share to secure a controlling stake in the New Zealand firm, trumping a rival bid by Zeta Resources, saying it wanted to preserve NZOG's exploration opportunities, especially the Barque prospect off the Canterbury coast.
OGOG, which held a 4.3 percent stake in NZOG before mounting its takeover, still hasn't declared the deal unconditional.
NZOG shares last traded at 72 cents, and have gained 15 percent over the past 12 months.