Royal Dutch Shell PLC has increased its bid for Britain’s Cove Energy PLC, which has assets in Kenya, Tanzania and Mozambique, to around $1.8 billion in cash.
Shell bid $1.58 billion for Cove in Feb. 22 in a management-endorsed deal, then a 29 percent premium to Cove’s share price. But two days later Thailand’s state-owned PTT Exploration launched a $1.8 counter-bid.
Shell is now matching that — again with the endorsement of Cove’s management.
Shell said in a statement published on the London Stock Exchange the new offer is a 42 percent premium to the February price.
Shell’s main interest in Cove is for natural gas assets off the East African coast, and the offer is conditional on approval by Mozambique’s government. REUTERS