A$40m recommended takeover by Risco Energy
In May 2018, Risco Energy Investments (SEA) Limited (“Risco”), a private energy investment vehicle, announced an unsolicited, on-market cash offer for Tap Oil Limited (“Tap Oil”).
Risco’s final offer of A$0.091 per Tap Oil share valued Tap Oil at approximately A$40 million, and represented a premium of approximately 49% to Tap Oil’s last trading price prior to announcement of the offer. Tap Oil’s Independent Board Committee believed Risco’s initial offer of A$0.070 undervalued the company and was timed in advance of potential value enhancing events, including upcoming exploration, appraisal and development drilling, and accordingly, initially recommended that shareholders reject the offer. However, following an increase in the offer price to A$0.091, Tap Oil’s Independent Board Committee ultimately recommended that shareholders accept the offer.
Azure advised Tap Oil’s Independent Board Committee on all aspects of the transaction including valuation and strategic advice, defence tactics, structuring and negotiation of the relevant transaction agreements.