The Hurricane Energy PLC (LON: HUR) share price edged 2.40% higher after publishing the scheme document for the recommended acquisition of the company by Prax Exploration & Production PLC (Prax) via a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006.
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The UK oil and gas company published all the offer details and the timetable for the events leading to the acquisition, including the deadlines for submitting the proxies for the court meeting and the general meeting, as well as the voting record time on 2 May 2023.
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Investors muted reaction to the news was because they had already priced in the acquisition, which was announced on 16 March 2023. The company urged Scheme and Hurricane shareholders to submit proxy appointments and instructions for the court and general meetings.
Hurricane Energy reminded shareholders to vote in large numbers for the court meeting so that the court sees that they were adequately represented during the vote for the Scheme of arrangement, given that the court must sanction the scheme before the acquisition can be completed.
The oil and gas company confirmed that its directors believe Prax’s acquisition offer is fair and reasonable based on the advice of Stifel, its advisor, which has examined the deal’s financial terms. The directors believe that the terms of the acquisition are in the best interests of Hurricane’s shareholders.
Hurricane Energy has scheduled the General Meeting of shareholders and the Court Meeting for 4 May 2023 at The Science Room, Royal Society of Chemistry, Burlington House, Piccadilly, London, W1J 0BA. The Court Meeting will start at 10.00 a.m. and the General Meeting at 10.15 a.m. or as soon as the Court Meeting has concluded.
The oil and gas firm’s directors have urged shareholders to vote in favour of all the resolutions proposed at the general meeting to allow the acquisition to move forward. The company also released its operations update for March, which was lower than usual since the P7z well was not producing oil.
The Prax acquisition of Hurricane Energy makes sense, given the potential payout detailed in the 16 March 2023 announcement.
*This is not investment advice.
Hurricane Energy share price.
The Hurricane Energy share price edged 2.40% higher to trade at 7.383p, from Wednesday’s closing price of 7.210p.
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