UBS analyst Nik Burns does not expect Chinese conglomerate Fosun International to extend its all-cash takeover offer for Roc Oil.
Fosun launched the all-cash bid for Roc at $0.69 a share, in August. The offer is set to expire at 7pm (AEDT) today. Fosun has already accumulated 80.4 per cent stake in the target company and the offer is now unconditional.
“The only remaining question is whether Fosun will reach 90 per cent interest in Roc before the offer closes. If Fosun reaches 90 per cent, we expect it will move to compulsory acquisition,” the UBS analyst said in a note to clients today.
UBS has downgraded the Roc Oil stock to “sell” from “neutral” as it expects the share price to fall even if the company remains listed, with liquidity in the stock substantially reduced.
Roc Oil had recommended the $474 million takeover offer from Fosun in August, abandoning an earlier $800 million merger plan with Horizon Oil.
ROC Price at posting:
68.0¢ Sentiment: None Disclosure: Not Held
