NZOG chairman and director resign on OGOG takeover
New Zealand Oil & Gas chairman Rodger Finlay and director Duncan Saville have resigned following the announcement this morning that OG Oil & Gas has received approval from the Overseas Investment Office for its partial takeover bid for NZOG.
Finlay has served on the board for six years and as chair since January 2016, while Saville has been a director since November 2014.
In a statement, Finlay said OIO approval "provides an ideal time to refresh the company's leadership", and NZOG "is entering an exciting new phase of acquisition and exploration, which will require new technical and industry-specific governance skills."
Saville is chair of Zeta Resources which had fielded a rival offer for NZOG. He successfully sought re-election to the company's board in October. At the time, he said he was supportive of the offer, and it was strategically very good for the company.
OGOG offered 78 cents per share to buy up to 70 percent of NZOG, providing it achieved a controlling 50 percent stake. As of today, OGOG has more than 62 percent of NZOG's fully paid ordinary shares currently on issue. Earlier this month the Ofer Global unit extended the closing date of its offer to Jan. 8 to allow time to obtain the necessary regulatory approvals. The offer period will remain open until then and remains subject to certain outstanding customary conditions.
Chief executive Andrew Jefferies said Finlay had "led the company through a challenging time of reduced costs, a capital return and the restoration of dividends, while oil prices have been through a deep decline. He leaves the company with its sails trimmed for the conditions and capabilities that will see it grow and flourish under its new majority shareholder."
Jefferies also said the company has "been through considerable change during Mr Saville's time on the board and he leaves the company in good shape as we enter an exciting new era. We wish him all the best for the future."
NZOG shares last traded at 71.5 cents and have gained 13 percent this year.