Drillsearch Energy Limited (ASX:DLS) has made takeover bid for petroleum explorer Acer Energy Limited (ASX:INP), valuing the company at about $118 million.
The offer price of 25.5 cents per share reflects a 31 per cent increase on Acer’s last closing price.
Drillsearch Chairman Jim McKerlie says the oil and gas developer’s offer provides Acer shareholders a significant premium for their shares on attractive and flexible payment terms.
Acer’s largest shareholder Republic has already sold a 19.9 percent stake of the energy company to Drillsearch and in the absence of superior offers, plans to accept the offer for its remaining 18.8 per cent holding.
Drillsearch posted a full year net profit on $10 million for fiscal 2012.