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
  • Gulf News

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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