Energy

Shell Gets Its Way in Mozambique (RDS-A, APC)

Oil supermajor Royal Dutch Shell plc (NYSE: RDS-A) has finally nabbed British-based Cove Energy PLC in a deal worth $1.8 billion. In late February shell made an offer of $1.58 billion for the firm, whose major asset is an 8.5% stake in a natural gas field offshore of Mozambique in East Africa that is 35.6%-owned and operated by Anadarko Petroleum Corp. (NYSE: APC). The field is believed to hold up to 30 trillion cubic feet of natural gas.

Shell is paying a 95.6% premium to the closing price on January 4th, the date on which Cove announced that the company would be sold. Thailand’s PTTEP PLC had topped Shell’s original bid for Cove with a bid of $1.8 billion, the same amount Shell has finally agreed to pay for Cove. PTTEP has indicated only that it is considering its options.

Under the terms of the deal, Cove may seek other bids, but must pay a break-up fee of about $18 million should it choose to accept one.

Paul Ausick

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.