Qatar’s Al Mirqab Offer Values Heritage Oil at $1.55 Billion

Apr 30, 2014 6:42 am ET

(Updates with Heritage share price in fifth paragraph.)

April 30 (Bloomberg) -- Al Mirqab Capital SPC, a company controlled by Qatar’s royal family, made a cash offer valuing Heritage Oil Plc at 924 million pounds ($1.55 billion).

The offer of 320 pence a share, recommended by Heritage’s board, is a 25 percent premium to yesterday’s closing price, Heritage said today in a statement. Heritage today reported a profit of $100.4 million for 2013 on sales of $431.9 million.

Heritage holds stakes in onshore oil fields in Nigeria and exploration rights in Papua New Guinea. Tony Buckingham, the company’s founder and chief executive officer, will retain a 20 percent holding and serve as an adviser for at least five years.

“The independent committee of Heritage’s board believes that the offer represents an attractive and certain value,” Heritage Chairman Michael Hibberd said in the statement.

The shares jumped as much as 23 percent to 317.9 pence in London intraday trading, the most since Aug. 8, 2012, and changed hands at 313.2 pence as of 10 a.m. local time.

Heritage and its local partner are developing the OML 30 block in Nigeria, where production has reached more than 50,000 barrels a day, the company said today.