OG Oil & Gas, the oil and gas arm of the Ofer Global Group, has formalised its partial takeover offer for New Zealand Oil & Gas after the New Zealand energy explorer rejected an "inadequate" partial offer from ASX-listed Zeta Resources.
OGOG is offering 77 cents a share for a maximum 70 per cent of NZOG, above Zeta's 72 cent offer but still below the 78 cent-to-93 cent range in a valuation NZOG's independent directors commissioned from Northington Partners ahead of rejecting Zeta's proposal.
Alastair McGregor, chief executive of OG Oil & Gas (Singapore), said his company doesn't agree with Zeta's assessment that NZOG is "essentially a cashbox" that is at a "strategic crossroad".
While Zeta wanted NZOG to return $50m to shareholders while slashing costs, OGOG sees NZOG as being "in an enviable position, with the right leadership and sufficient capital to take advantage of this attractive point in the exploration and development cycle."
"We are faced with two starkly divergent opinions on NZOG's future," McGregor said in his covering letter for the offer.