Activist investment firm Kimmeridge Energy Management has submitted a $6 billion offer to buy Ascent Resources, the Financial Times reported on Tuesday.
The bid is the latest challenge to Ascent’s private equity backer Energy & Minerals Group’s (EMG) efforts to sell a more than 30% stake in the company from one of its funds to another, valuing Ascent at $5.5 billion, FT said.
“Our view is that this is a significant premium versus the valuation proposed in the continuation funds,” U.S.-based Kimmeridge’s managing partner Ben Dell told the newspaper.
The offer is contingent on Ascent offering Kimmeridge 60 days of exclusive negotiations and is subject to due diligence, the report said. Kimmeridge is also offering existing Ascent investors the ability to participate in the takeover, acquiring up to a 49% stake in the gas driller.
Kimmeridge and Ascent Resources did not immediately respond to Reuters’ request for comment. Reuters could not immediately verify the report.
The FT report comes after U.S.-based investment fund Mason Capital last week said it was prepared to evaluate an all-cash offer for Ascent at a superior value to the EMG deal.
Ascent Resources is one of the largest privately-held exploration and production companies in the U.S. in terms of asset size and net production as well as the biggest natural gas producer in the state of Ohio, according to its website.
Energy investor Kimmeridge focuses on unconventional U.S. oil and gas assets. It took a stake in shale producer Devon Energy earlier this year.
(Reporting by Anusha Shah in Bengaluru, additional reporting by Gursimran Kaur Editing by Mrigank Dhaniwala and Sonia Cheema)