Emerging uranium company Raisama (ASX: RAI) is set to acquire Peak Oil & Gas (ASX: PKO) for A$39 million, equivalent to A$0.30 a share, to create a diversified Australian energy company.
Peak Oil & Gas board of directors unanimously recommend the offer.
Under the terms of the offer, Raisama will offer 15 shares in Raisama for every 11 Peak shares, with the transaction expected to be completed in early 2011.
David Berrie, managing director of Raisama, will become executive chairman of the combined company.
Jeff Steketee, managing director of Peak, will become managing director of the combined company.
Raisama has entered into pre‐bid acceptance agreements which total 19% number of Peak shares on issue.
For Raisama, this transaction will provide an imminent transition from explorer to producer with significant cash flow from the start-up of Peak’s Cadlao Oil Project in the Philippines expected in late 2011, an investment in oil and gas projects in Asia Pacific and a diversified asset base.
It is anticipated that Raisama’s bidder’s statement and Peak’s target’s statement will be sent to Peak shareholders in January 2011, and that a meeting of Raisama shareholders to approve the acquisition will take place in late January or early February 2011.