Business | Oil & Gas
Shell in £994m bid for Cove
African explorer made gas discovery in Mozambique last month
- Bloomberg
- Published: 00:00 February 23, 2012
London: Royal Dutch Shell offered to buy African explorer Cove Energy for £994.4 million (Dh3.7 billion) to expand in Mozambique and Kenya.
Shell is offering 195 pence for each Cove share, a 26 per cent premium on the closing price of the London-based company on Tuesday, according to a statement. Cove's board said it expected to recommend the deal. Cove put itself up for sale last month after reporting one of the world's largest gas discoveries in a decade off Mozambique.
"This is a much better price than the market anticipated and will likely not see" another bidder, said Stuart Joyner, an analyst at Investec Securities.
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