Ofer Global Oil & Gas extends offer to allow time for regulatory approval

The offer has been pushed out 11 days to get regulatory approval. Photo / File

OG Oil & Gas has pushed out the closing date of its partial takeover bid for New Zealand Oil & Gas to December 20 to allow time to obtain regulatory approvals.

The oil and gas division of Ofer Global has received acceptances which, together with its current shareholding, total more than 40 per cent of NZOG and it needs another 10 percent to reach the minimum 50 per cent threshold, it said in a release to the stock exchange.

The offer has been pushed out 11 days to get regulatory approval, which includes getting consent from the Overseas Investment Office.

While Prime Minister Jacinda Ardern this week scotched a report that all applications currently before the OIO were on hold, the government has begun policy work to tighten up further the sale of New Zealand assets to foreign investors.

The extent of the moves are not known in detail but appear likely to go well beyond the announced creation of an effective ban on the sale of existing homes to non-resident foreign purchasers.

OGOG has offered to acquire up to 67.55 per cent of the NZOG shares it does not already hold or control at a price of 78 cents per share, up from the 77 cents per share bid it initially floated.

The higher OGOG bid won over NZOG's independent directors who unanimously recommend shareholders accept the revised offer.

Ofer Global is a private portfolio of international businesses chaired by Eyal Ofer.

The global firm wants to preserve NZOG's exploration opportunities and has named the Barque prospect off the Canterbury coast as too interesting to ignore.

If it wins over shareholders it plans to find international partners for the deepwater prospect, which was ranked ninth among the world's top oil and gas targets in a survey presented to a recent petroleum conference in New Zealand.

New Zealand Oil & Gas shares recently rose 0.7 per cent to 72 cents.