Egdon Resources PLC (AIM: EDR) is the most recent company to depart from the UK public market, following a takeover agreement. This marks yet another company in a growing list that has chosen to exit the public market.
The transaction places the value of the UK onshore oil producer and explorer, listed on AIM, at approximately £26.6 million. This represents a staggering 96% premium to its valuation as of Tuesday’s market close.
As one might expect, the company’s shares skyrocketed, surging more than 80% to 4.2p. This left them just 0.3p shy of the offer price.
The acquiring company is Petrichor, which, through a series of connections, traces back to Explorers Petroleum Corp based in the US. This corporation is under the control of a man named George Yates.
On the subject of the acquisition, George M. Yates, Chairman & CEO of HEYCO Group, stated:
“Mark Abbott’s team has established a robust enterprise with ongoing production and numerous potential opportunities. As a longstanding shareholder, we’ve maintained the view that Egdon’s full value has not been wholly acknowledged by the public market. This acquisition enables us to bolster Egdon more effectively by directly injecting capital and harnessing our collective technical and managerial skills. We’re thrilled to persist in supporting Egdon and believe that jointly, we can better propel Egdon’s strategic ventures.”
Reflecting on the acquisition, Mark Abbott, Managing Director of Egdon, remarked:
“We hold Petrichor and the HEYCO Group in high esteem, and they have consistently supported Egdon over the years, assisting us in achieving the current level of profitability. There’s a significant amount of mutual respect between our groups, and we’re delighted that Egdon will sustain its operations under reliable stewardship. After weighing all strategic alternatives and acknowledging the challenges, the proposed acquisition offers shareholders a chance to secure a cash exit at a compelling premium.”
