Merger on track

Horizon-Roc merger ‘on track’ Alison Middleton Monday, 14 July 2014
HORIZON Oil says plans for the $A800 million merger with Roc Oil remain in place despite a shareholder attempt to thwart the scheme. Elevala-2 image courtesy of Horizon Oil. The Elevala and Ketu discoveries in PRL21 are estimated to host 866bcf and 43.4mmbbl condensate so far. The Papua New Guinea-focused company welcomed the outcome of Roc Oil’s extraordinary general meeting on Friday, which saw shareholders reject a resolution to amend Roc’s constitution. Investment house Allan Gray had called for the EGM to try and allow Roc Oil shareholders to vote on the merger with Horizon Oil. A total of 53.24% of shareholders voted against the resolution at the EGM with 46% in favour. In a statement to the market, Horizon Oil noted the resolution was proposed by shareholders holding 6.6% of Roc Oil shares. “As a consequence of the Roc Oil shareholder decision at the EGM, Horizon Oil’s proposed merger with Roc Oil by way of a scheme of arrangement remains on track,” Horizon Oil chief financial officer and company secretary Michael Sheridan said. “Roc shareholder approval will not be required in order to implement the scheme. “The independent expert report prepared for Horizon Oil in respect of the scheme has concluded that the scheme is in the best interests of Horizon Oil shareholders. “The Roc Oil board is also unanimously of the view that the scheme is in the best interests of all Roc Oil shareholders, supported by Roc Oil’s independent expert report. “The merger will bring together two highly complementary companies, creating a leading Asia-focused upstream oil and gas company that will provide a platform for significant potential growth and value realisation.” Horizon Oil shareholders will be asked to vote on the scheme on August 7.