Acquisition of Dart to Close as Scheduled Despite Difficulties, Says IGas
IGas Energy’s plans to acquire Dart should not slow down despite the fall in the IGas share price since 21 July, reads a note published by the UK-headquartered company.
‘The Scheme continues to be unanimously recommended by both the Dart Directors and IGas Directors and there has been no change to the advantages and disadvantages of the Scheme which are outlined in the Scheme Booklet dated 23 July; or the respective businesses of Dart or IGas. However, Deloitte Corporate Finance Pty Limited, appointed by the Dart Board, yesterday issued a supplementary letter to the Independent Expert's Report dated 21 July 2014,’ the company wrote on Tuesday.
The fall in IGas’ share price led Deloitte to change its official opinion on the deal to ‘reasonable but not fair.”
According to the consultancy firm, the fall in the share price is consistent with the fall in the share prices of comparable oil and gas companies in the UK.
‘As a result of the change in the Deloitte basis of opinion, as is usual and in accordance with ASIC regulations, The Supreme Court of Queensland has postponed the meeting for Dart shareholders to vote on the Scheme to 9.30am on Wednesday 10 September 2014 to allow time for Dart to dispatch supplementary material, including the Independent Expert's Supplementary Letter, to Dart shareholders.’
Despite the postponement of the meeting, IGas said that there should not be any impact on the closing timetable for the proposed acquisition.
CMA'S INVESTIGATION
With the intention to create a company able to capitalise on the renewed interest for shale gas in the United Kingdom, the two companies reached an agreement on the key commercial terms for IGas’ investments last May.
Last week, the British government announced that the Competition and Markets Authority (CMA) ‘is considering whether it is or may be the case that this transaction has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.’