Oil and gas producer Roc Oil Company Limited (ASX:ROC) directors have backed a takeover bid from the biggest private-owned conglomerate in Mainland China, Fosun International.
Fosun has offered Roc 69 cents per share, representing a 52 per cent premium to the price of the company’s stock ahead of its proposed merger with Horizon Oil Limited (ASX:HZN)
While the proposed all-scrip equal merger deal had the backing of both boards some Roc Oil shareholders had voiced concerns over the fairness of the transaction.
Roc Oil Chairman Mike Harding says the latest takeover offer is superior and the company’s directors unanimously recommend shareholders accept the offer.
The deal remains subject to the Foreign Investment Review Board’s approval and more than half of Roc’s shareholders accepting the offer.
Roc Oil reported a net profit of $50.5 million in the full 2013 calendar year.