NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

NZOG pledges strategy review after grumpy minorities reject Ofer deal

By Gavin Evans
BusinessDesk·
14 Nov, 2019 01:20 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Minority holders rejected a takeover by major shareholder Ofer Global. Photo / File

Minority holders rejected a takeover by major shareholder Ofer Global. Photo / File

New Zealand Oil & Gas has promised a review of the firm's strategy after minority holders rejected a takeover by major shareholder Ofer Global.

The 74 cents-a-share offer, being effected through a scheme of arrangement, was already lost on the basis of postal and electronic votes unless shareholders attending today's special meeting changed their positions.

READ MORE:
• Brian Gaynor: NZOG deal raises questions about NZ takeover laws
• Brian Gaynor: NZOG drills another hole in investor confidence
• NZOG posts $2.9m loss despite Kupe, Maari performance

The final result today showed just over 63 per cent of minority shares were voted against the plan. By number of shareholders, the offer was backed two-to-one in favour.

During an at times testy meeting, shareholders complained at the low probability of commercial success the offer ascribed to the firm's stake in the Ironbark prospect off north-western Australia, a lack of transparency around the process, and the opportunistic timing of the offer, given the potential uplift NZOG may gain from other players' drilling planned off the South Island next year.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Rosalind Archer, who with fellow independent director Rod Ritchie had recommended the scheme of arrangement, told the meeting that the appetite for risk among shareholders varied widely and that it had been right to put the offer before them.

Given the outcome, she said there would need to be a "strategic refresh" on the firm's future direction and how "we can all go there together."

"The company and the board have a very clear steer on what the collective appetite for exploration - and taking those kinds of explorations risks - is from the minority shareholders."

Advertisement
Advertise with NZME.

NZOG shares dropped 7.8 per cent to 59 cents. They fell almost 10 per cent on Friday, from 72 cents, when the first update on electronic voting on the proposal showed minority holders were split on the deal.

NZOG is 70 per cent-owned by Ofer's energy arm, OG Oil &Gas.

It has a small stake in the Kupe gas field and, through subsidiary Cue Energy Resources, a small stake in the Maari oil field and production interests in Indonesia. It also owns half the Barque exploration permit off the Oamaru coast and has a 15 per cent stake in the Ironbark prospect off north-western Australia where partner BP plans to drill late 2020. Cue, half-owned by NZOG, also has a 21.5 per cent stake in Ironbark.

NZOG has been unsuccessfully trying to buy into producing assets and has little prospect of finding partners to help fund its New Zealand exploration activities after the government banned the granting of new offshore permits.

Archer and Ritchie were in a tough spot after recommending shareholders accept OGOG's earlier 62 cent offer – a 25 per cent premium. Vocal opposition saw that subsequently increased to a final 74 cents, further reinforcing a perception among shareholders that the offer was opportunistic.

Archer reminded the meeting in Wellington, attended by 22 shareholders, that a common condition of a scheme of arrangement is that directors will recommend the transaction if the negotiated offer price falls within the valuation range of an independent adviser and no superior offers appear.

Northington Partners had valued NZOG shares between 62 and 84 cents.

Archer said she had no advice on how OGOG, which bought into the company in 2017, will respond to the rejection.

Chief executive Andrew Jefferies told the meeting that he, Archer and Ritchie have exploration backgrounds and are "possibly a little surprised at the vehemence of the devotion for exploration that our shareholders have shown."

He said the firm is still pursuing opportunities and will continue to do so until that strategy is reviewed by the board.

Advertisement
Advertise with NZME.

The Accident Compensation Corporation is one of the company's biggest shareholders with a 1.8 per cent stake as at August 12.

Guy Elliffe, an investment manager with the corporation, said the firm is "drawing a long bow" on investors' appetite for exploration and he urged the company to canvass investors widely during the coming review.

"All shareholders are saying, when they are voting against the offer, is that they think the price is inadequate," he said. "To extrapolate that to shareholders making a long-term commitment to an E&P strategy is factually wrong."

Elliffe also said the skills needed of independent directors in conducting such a review were not necessarily the same as the exploration and production skills that Archer and Ritchie brought to the role.

Archer said she couldn't promise a change in board structure, but said chair Sam Kellner had heard the complaints coming from shareholders.

Save

    Share this article

Latest from Business

Retail

'Challenging conditions': Luxury retail giant DFS closing Kiwi stores

11 Jul 07:43 AM
Premium
Shares

Market close: 'Green shoots' for Ryman – positive reaction to earnings outlook

11 Jul 06:25 AM
Premium
Retail

Push Gummies halts sales amid creatine content controversy

11 Jul 06:20 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

'Challenging conditions': Luxury retail giant DFS closing Kiwi stores

'Challenging conditions': Luxury retail giant DFS closing Kiwi stores

11 Jul 07:43 AM

Duty Free Shoppers is exiting the Oceania market after 30 years.

Premium
Market close: 'Green shoots' for Ryman – positive reaction to earnings outlook

Market close: 'Green shoots' for Ryman – positive reaction to earnings outlook

11 Jul 06:25 AM
Premium
Push Gummies halts sales amid creatine content controversy

Push Gummies halts sales amid creatine content controversy

11 Jul 06:20 AM
Watch: 'My raging backyard river' - North Shore homeowner fears stormwater torrent

Watch: 'My raging backyard river' - North Shore homeowner fears stormwater torrent

11 Jul 06:00 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP