Hong Kong-listed Chinese conglomerate Fosun International has agreed to acquire Sydney-based Roc Oil Company Limited (ROC) for around US$442 million (A$474 million) via cash payment, according to a company announcement.
Fosun International will acquire all of the Australia-listed ROC’s shares at A$0.69 cash per share, representing a 10% premium to the closing price of ROC shares on August 1, 2014, the last trading day before the announcement of the deal.
The price equals to a 52% premium compared to ROC’s closing price on April 23, when another Sidney-based petroleum producer Horizon Oil Ltd. proposed an all-stock merger of equals between the two companies.
The Fosun offer will lead ROC to terminate the previous merger plan.
“The proposal to purchase all of ROC’s shares for cash is superior when considered against the alternative merger of equals with Horizon and offers a significant premium to share price performance,” says ROC Chairman, Mike Harding, in a statement.
The deal is expected to be executed on or before August 20.
The reason for Fosun International to enter into the agreement is to enable the group to enter the upstream oil and gas industry as well as acquire oil and gas assets.