10:16 PM, February 1 2016
Premier Oil lead the risers in Monday’s trading, rising 89% by close of play as it resumed trading after a 3 week suspension requested by the company. The suspension had been called for after a they had announced a $120 million purchase of the E.ON’s UK North Sea assets, which classified as a ‘reverse takeover’.
The company resumed trading, and stated that the purchase no longer classed as a reverse takeover due to the final price tag being dropped; the cash that E.ON held in the business was less than originally estimated.
The final price was announced to be nearer to $135 million – not the original $170, according to the CEO Tony Durrant.
This purchase may not be the last for Premier Oil, as Durrant made comment that the company was on the lookout for further acquisitions once the E.ON deal was complete. "In the current environment there are a lot of things for sale and lots of things that we think would add to the business," Durrant said.
The E.ON purchase still needs to be ‘rubber-stamped’ by shareholders, bond-holders and also requires bank approval – the company is said to have announced plans to hold a shareholder vote early spring.
Premier Oil has also hinted that it may sell off some of the acquired assets to other competitors who showed interest earlier in the sales process. "We know there is industry interest in some of the assets, so we'll keep that in mind.", said Durrant.