Venture buckles and accepts Centrica offer

25th Aug 2009 13:57

Oil and gas producer Venture Production has finally accepted defeat in its bid to stave off Centrica's £1.3bn hostile bid.The group said it continues to believe the 845p a share offer still "substantially undervalues" the group but shareholders should accept if the offer goes unconditional, as Centrica will have control of Venture. It also said that if Centrica receives 75% acceptances or more of Venture's shares, it would cancel Venture's listing on the stock exchange. 'Consequently, there is a risk that Venture shareholders who do not accept the Offer could, as a result, own a minority interest in an unlisted company. This would significantly reduce the liquidity and marketability of Venture shares,' said Venture.Centrica said it was pleased with the Venture board's decision. 'I believe this is in the best interests of shareholders and Venture employees,' said Centrica CEO Sam Laidlaw.'I know that the acquisition process will have created uncertainty for Venture staff but I can reassure them that we intend to develop and grow the business and their skills and experience will be vital to a successful future,' he added.Venture founder Larry Kinch and ArcLight Capital Partners, which together own 12.8% of Venture, have informed the group that they intend to sell their holdings.