OG Oil & Gas has received approval from the Overseas Investment Office in its partial takeover bid for New Zealand Oil & Gas, one of the final hurdles the oil and gas division of Ofer Global needs to declare the deal done.
"This approval is a significant moment for our vision to build the future of New Zealand Oil & Gas as its largest shareholder. I am personally very excited about the prospect of having New Zealand Oil & Gas join the Ofer Global family. By working together, we are confident that we will create value for shareholders, the country and the region," said Eyal Ofer, chair of Ofer Global, in a statement.
OGOG offered 78 cents per share to buy up to 70 per cent of NZOG, providing it achieved a controlling 50 per cent stake. As of today, OGOG has more than 62 per cent of New Zealand Oil & Gas's fully paid ordinary shares currently on issue, the statement said.
Earlier this month the Ofer Global unit extended the closing date of its offer to January 8 to allow time to obtain the necessary regulatory approvals. The offer period will remain open until then and remains subject to certain outstanding customary conditions, the statement said.
"This has been a landmark week for OGOG. First we met the minimum acceptance threshold for our offer and now the OIO has given its approval," said Alastair McGregor, OGOG chief executive.
OGOG emerged as a rival bid to Zeta Resources, saying it wanted to preserve NZOG's exploration opportunities, especially the Barque prospect off the Canterbury coast.
Acceptances will be scaled if they go above OGOG's 70 per cent upper cap.
NZOG shares last traded at 71.5 cents and have gained 13 per cent this year.