Pertamina Makes Offer for France's M&P
Indonesian state oil and gas producer Pertamina has agreed with privately owned French holding Pacifico to buy its 25% stake in French independent producer Maurel & Prom (M&P) for €4.20/share and said it is willing to buy M&P outright, it was announced August 1. That would value the company at $1bn.
Pertamina has indicated that M&P will become an international development platform and that the experience and know-how of its teams are key for the success of its strategy. The basic €4.20/share offer price is a 47% premium to M&P's last closing price on July 29. Pacifico will earn an additional €0.50/M&P share if the Brent crude oil price exceeds $65/barrel for 90 consecutive trading days during calendar year 2017; that €4.70 would represent a 65% premium to M&P's closing price on July 29 of €2.85.
Pacifico is owned by French businessman Jean-Francois Henin, who is also chairman of M&P. Reports said the deal would value M&P at around $1bn.
M&P’s net production in 1Q 2016 was 23,717 barrels of oil equivalent/day, chiefly in Gabon (oil) and Tanzania, where it operates the Mnazi Bay gasfield. As well as operations in Africa, South America and Canada, it also owns a 21.37% stake in Nigerian oil and gas producer Seplat which produced 25,695 boe/d in 1Q 2016. In Asia, M&P has 40% equity in the 9,652 km2 Myanmar exploration block M2, operated by PetroVietnam with 45%
Pacifico and Pertamina say their agreement remains subject to regulatory approvals. But Pertamina indicated that, subject to completion of the Pacifico transaction and a favourable recommendation from M&P's board, it will launch a voluntary tender offer over Maurel & Prom at the same conditions.
Maurel & Prom said it is to convene its board to analyse the terms of the transaction announced by Pacifico and its consequences for the company and all of its shareholders. As at January 1 2016, individuals 38%, Pacifico 25%, institutional investors owned 28% of M&P shares, treasury shares were 3%, employees 1% and others had 5%. The company was founded in 1813.
Mark Smedley