Hedge fund Petrus to vote against Medco takeover of Ophir
Activist investor says offer undervalues oil and gas producer
Hedge fund Petrus Advisers said it plans to vote against Indonesian oil group Medco Energi’s recommended takeover of Ophir Energy, because it believes recent newsflow shows the offer undervalues the London-listed explorer and producer.
The fund, which owns 3.94 per cent of Ophir, said that since January’s agreed deal “our satisfaction with the value our board deems as satisfactory has decreased further”. It cited production numbers and a reserves upgrade, announced in results earlier this month.
Medco and Ophir agreed in January to a 55p a share offer, following a month of speculation over a deal. Ophir’s shares on Thursday were trading up 0.9 per cent at 56.1p.
“We are convinced that more value can be created for shareholders if the company monetises the strong cash generation from its South East Asian portfolio and distributes proceeds together with proceeds of any asset sales to shareholders,” the firm said.
A spokesman for Ophir declined to comment.