Horizon Oil may receive takeover interest following collapse of Roc Oil merger
Horizon Oil, the ASX-listed oil and gas business, could receive takeover interest following the collapse of its merger with Roc Oil, the Australian Financial Review reported.
According to the unsourced report in the paper’s Street Talk column, Horizon’s proposed merger with Roc Oil was meant to save the companies from takeover approaches, but it was scuppered when Roc recommended a rival offer from Fosun.
Horizon’s cash reserves are relatively low and it has desires to build a mid-scale LNG facility costing nearly USD 2bn, the article said, while noting the outcome of the Roc deal raised questions about its future as an independent company.
Possible buyers include Oil Search, Santos, and InterOil, the article said, with both Oil Search and Santos controlling acreage close to Horizon’s major assets in Papua New Guinea's Western Highlands.
Canada’s Talisman Energy is seeking to divest noncore assets, some of which are located in Papua New Guinea. The possibility of buying Talisman’s assets could lift the price for Horizon, which has preemptive rights over certain assets. Talisman has not yet confirmed its intentions.
Horizon’s partners Mitsubishi and Osaka Gas may also be interested, but they are unlikely to move until the Canadian firm reveals its plans.
Source Australian Financial Review