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Tuesday, 02 December, 2008, 03:40 GMT | more >>

Nexus takes larger Anzon slice



By Upstream staff 

Australian producer Nexus Energy has upped its stake in takeover target Anzon Australia to 16.4%, stepping up its pursuit of a merger with its compatriot.

Nexus said it had increased its shareholding by 20.29 million ordinary shares, to a total interest of 60,715,901 ordinary shares, or 16.39% of the current issued share capital of Anzon.

Nexus has been mopping up Anzon's shares in the open market since September, when Anzon put itself up for sale after it said it had received several takeover approaches.

The holding confirms Nexus as the second largest shareholder in Anzon, after Anzon’s UK-listed parent Anzon Energy.

"Nexus believes that its position in Anzon enhances the company's alternatives with respect to investigating a possible merger with Anzon, and also potentially influencing the outcome of the current Anzon sale process," Nexus said in a statement.

Melbourne-based Nexus did not give details on how much it paid for the shares.

Local media has reported that Nexus' was building up its stake in Anzon because Anzon had dropped the company off a shortlist of four parties which were allowed to conduct due diligence.

Anzon has not identified the potential bidders but analysts have said larger rivals Santos, Origin Energy and Australian Worldwide Exploration were likely suitors.

Nexus, which has a market value of around A$724 million (US$640 million), said a potential merger with Anzon would create a mid-sized oil and gas company with market value of about A$1.4 billion.

A merged entity would also reduce operation costs as both companies' key assets were located in the Gippsland basin off Victoria.

Nexus controls the A$160 million Longtom gas project off Victoria, next to to the Anzon-operated A$1.2 billion Basker-Manta-Gummy oil project .

Shares in Anzon, which has a market capitalisation of about A$670 million, closed 0.6% lower at A$1.81 today. Its shares have jumped nearly 50% since 27 August when it first said it had received approaches.

Nexus' shares fell 4.2% to A$1.37.

The Basker-Manta-Gummy development has estimated proved and probable reserves of about 40 million barrels of oil, 380 petajoules of gas and about 90 million barrels of condensate.

Anzon has estimated the field to have a lifespan of up to 15 years.

Anzon is being advised by RFC Corporate Finance and Deacons.


Wednesday, 03 October, 2007, 09:05 GMT  | last updated: Thursday, 04 October, 2007, 02:00 GMT

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