(MENAFN- ProactiveInvestors - N.America) Aussie energy firm Oil Search Limited (ASX:OSH) has launched an agreed bid for InterOil Corporation (USA), valuing the latter at around $2.2bn.
The merger will consolidate the liquefied natural gas (LNG) scene in Papua New Guinea, where both companies have assets.
OilSearch is offering 8.05 of its shares for each of InterOil share, and is also offering a partial cash alternative. InterOil shares will receive an additional cash payment of $6.05 a share for each trillion cubic feet equivalent of gas, over and above 6.2 trillion cubic feet, that is certified for InterOil's Elk and Antelope fields.
The contingent element of the offer could see the value of the bid rise to $51.13 a share,
Shares in InterOil (NYSE:IOC) were the top performers on the New York stock exchange big board, rising 36% to $42.92.
If it completes, the merger would head off attempts by InterOil's founder and former chief executive, Phil Mulacek, to regain a set on the board along with four of his associates.
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