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RockRose Energy recommends premium-priced cash takeover offer from Viaro Energy

“We have ambitious growth plans in the UKCS," says Viaro Energy chief executive Francesco Mazzagatti

RockRose Energy PLC - RockRose Energy recommends premium-priced cash takeover offer

RockRose Energy PLC (LON:RRE) has recommended a cash takeover over offer valuing the UK oil and gas company at £247.5mln.

Viaro Energy, a global commodities trading firm, has offered a price of £18.50 per share to acquire Rockrose. It marks a premium of 64% to Friday’s closing price and 91% to the volume weighted average price for the past three months.

Rockrose produces around 20,000 barrels of oil equivalent per day from a portfolio of assets in the UK and Dutch North Sea.

Directors with shareholdings representing 33.3% of the company have backed the proposed transaction, along with 2% of shares held by other shareholders – so that Viaro has acceptances for 35% of Rockrose shares so far.

It is intended that the deal will be executed via a court-sanctioned scheme of arrangement and Rockrose shareholders will receive scheme documentation in due course.

"After careful reflection, the board of RockRose has concluded that accepting this offer is firmly in the best interests of our shareholders,” Andrew Austin, Rockrose executive chairman said in a statement.

“It has been an exciting journey since RockRose was founded five years ago. However, for the benefit of all stakeholders, now is the time to move on and allow RockRose to continue to flourish with new backers."

Viaro Energy chief executive, Francesco Mazzagatti added: “We have ambitious growth plans in the UKCS and we believe that RockRose's producing assets, its staff, its commitment to health and safety, the environment and best in class operational procedures, will be an ideal platform from which to grow our presence in the UKCS.

“I'm extremely pleased that RockRose's senior management team has agreed to join us as they share our vision for future growth."

In London, Rockrose shares jumped 61% to trade at 1,831.8p each in Monday’s early deals.

Quick facts: RockRose Energy PLC

Price: 1844 GBX

LSE:RRE
Market: LSE
Market Cap: £241.83 m
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