Osum Oil Sands said on Tuesday its board had withdrawn its recommendation that shareholders reject the all-cash offer by private equity firm Waterous Energy Fund for a bigger stake in the Canadian energy company, days after it raised the offer price.
Last week, Waterous said it plans to buy 57 million shares of the oil and gas firm, higher than the 50 million it had offered to buy earlier at C$2.40 per share. It also improved the offer to C$3 per share, implying a deal value of C$171 million ($136 million).
The new bid will remain open for acceptance until March 1.
Calgary-based Waterous, which currently holds a 45% stake in Osum, said on Thursday its latest bid has the support of all five executive officers of Osum, including Chairman William Friley and Chief Executive Officer Steve Spence.
The raised offer comes after Osum in December filed an application with the Alberta Securities Commission to halt the hostile bid for a majority stake in the company, arguing that the offer is “inadequate” and undervalues its assets. 29dk2902l