Wentworth Resources PLC (AIM:WEN) is set to be bought by Maurel et Prom (M&P), its partner in Mozambique, in a premium-priced deal that values the AIM-quoted company at £61.7mln.
A recommended cash offer is pitched at 32.5p, and, so far, has the backing of shareholders representing 22.32% of the company.
“As the majority owner and operator of the Mnazi Bay gas asset, M&P is familiar with and has a good understanding of the value of the Mnazi Bay asset and accordingly of Wentworth,” the company said in a statement.
“[The deal] will provide Wentworth shareholders with an immediate upfront realisation of value in cash for their Wentworth shares at a substantial premium to the market price, and an opportunity to realise this value despite the limited liquidity in Wentworth shares.
“As M&P is a partner and the operator of the Mnazi Bay asset with existing in-country relationships this is expected to facilitate a timely implementation of the Acquisition and a smooth continuation of operations," it added.
Wentworth’s sole non-cash asset is a 31.94% interest in the Mnazi Bay gas asset, operated by M&P, and it also held US$30.2mln of cash.
The company earlier this year struck an agreement to acquire Scirocco Energy’s interest in the nearby Ruvuma asset, in Tanzania, before other stakeholders in the project exercised pre-emption rights to snatch the deal from Wentworth.
The directors of Wentworth intend to recommend unanimously that Wentworth Shareholders vote in favour of the M&P transaction.
In London, Wentworth shares rose by 22% to 30.66p in Monday’s early deals.