Oil and gas company Cooper Energy Limited (ASX:COE) has inked a $31.5 million deal to merge with its rival Somerton Energy Limited (ASX:SNE).
Cooper has made an off-market takeover bid for all of the shares in Somerton for a 56 premium to its closing price before the announcement.
Cooper says the merger is in line with its strategy to grow in the Otway Basin and build a well-funded production and exploration company.
Both boards have backed the deal, entered into a merger implementation agreement and urged shareholders to vote in favour of the offer.
Beach Energy Limited (ASX:BPT) holds a 56.22 per cent interest in Somerton Energy and says it is considering its position in relation to Cooper’s bid.
Cooper Energy booked a net loss of $4.1 million in the first half of the 2012 financial year.
