Private investment fund Remus Horizons notified FAR Limited – an Australian oil company operating in Senegal’s RSSD offshore area – of its intention to takeover FAR’s assets in the Sangomar offshore oil development, a day ahead of the expected FAR shareholders meeting to approve the Woodside Energy transaction.
Remus has offered to buy FAR stock at AU $2.1. FAR had intended to sell its 15% stake to Woodside, the current operator. The Remus offer is said to be conditional on the rejection of Woodside’s offer by FAR.
“The FAR Board recognizes that FAR shareholders are likely to want an opportunity to consider the implications of this prior to voting on the sale resolution. Accordingly, the FAR Board intends to address this development as the first item of business at the meeting, including whether shareholders would seek more time to consider its implications,” FAR said in a statement.
The offer also presented an exit route for FAR’s shareholders who may want to leave, adding that they will receive cash. “Remus’ objective is to achieve outright ownership of FAR and subsequently fund the Phase 1 development of the RSSD Project. The Remus offer is consistent with Remus’ strategic objectives to acquire petroleum development and production assets in targeted geographies, including the African Continent,” Remus said in a statement.
“We are hopeful that the FAR board of directors will form the view that a successful Remus take-over of FAR will present a superior outcome to shareholders than the asset transaction and as such will withdraw from the asset transaction or recommend that shareholders reject it and instead recommend shareholders accept the Remus offer,” added Remus.