Mozambique endorses PTTEP's takeover
The Republic of Mozambique has extended a written consent for PTT Exploration and Production Plc (PTTEP)'s indirect acquisition of a gas field in Mozambique, allowing the Thai company another step closer to a successful acquisition of Cove Energy Plc.
Mozambique's consent is one of two conditions imposed by PTTEP's subsidiary, PTTEP Africa Investment Ltd (PTTEP AI), for the acquisition of Cove Energy. The other is Cove Energy's board of directors must encourage shareholders to sell their shares to PTTEP AI.
Tevin Vongvanich, president and CEO of PTTEP, said in a statement that PTTEP AI received the written consent from Mozambique's Minister of Mineral Resources. The receipt of this consent required a result of the indirect change of control of Cove Mozambique interest in the Republic of Mozambique, if the recommended cash offer is finalised.
The receipt of this written consent can confirm that Mozambique’s government has strong confidence and trust in the capability of PTTEP, Thailand’s petroleum exploration and production company which strive to increase and strengthen the energy supply to both Thailand and the Republic of Mozambique, he said in the statement.
The consent was extended after PTTEP raised the offer by 25 per cent from its February offer to 1.22 billion pound sterling.
