North Sea oil producer RockRose Energy Plc said on Monday it agreed to be bought by privately held energy firm Viaro Energy in a deal that values it at £247.5 million.
Viaro Energy will pay £18.50 for each RockRose share — a 64% premium — sending the stock 62% higher to around £18.29.
Rockrose is one of the independent firms that have bought assets in the North Sea and West of Shetland area from “legacy producers” — helping to extend the life of fields and revive production levels.
Viaro Energy is a UK registered company, headquartered in London and a wholly owned subsidiary of Viaro, a physical energy trading group with global commodities trading activities and interests in energy sector support services and upstream asset development.
The Viaro Group has offices in Dubai and Hong Kong.
RockRose executive chairman Andrew Austin said: “After careful reflection, the board of RockRose has concluded that accepting this offer is firmly in the best interests of our shareholders.
“It has been an exciting journey since RockRose was founded five years ago.
“However, for the benefit of all stakeholders, now is the time to move on and allow RockRose to continue to flourish with new backers.”
Viaro Energy CEO Francesco Mazzagatti said: “I am very pleased that the board of RockRose has recommended our offer for RockRose.
“We have ambitious growth plans in the UKCS and we believe that RockRose’s producing assets, its staff, its commitment to health and safety, the environment and best in class operational procedures, will be an ideal platform from which to grow our presence in the UKCS.
“I’m extremely pleased that RockRose’s senior management team has agreed to join us as they share our vision for future growth.”