Centrica sets out to woo Venture’s shareholders
CENTRICA, the company which controls British Gas, will this week seek to win over investors for its hostile £1.3bn takeover of the North Sea gas company Venture Production.
The gas group’s board of directors slammed Centrica’s bid late last week, saying it “substantially undervalued” the business.
The offer of 845p a share, which values the oil and gas explorer at around £1.3bn, came after Centrica upped its holding in Venture to 29 per cent, having acquired private equity firm 3i’s 5.4 per cent share.
It wants to own more than 50 per cent of the business.
The group will now look to win over major shareholders including Legal & General and JP Morgan.
Centrica bought a 22 per cent stake in Venture in March, and said it may make a cash offer for the company. It had until today to make a bid or to walk away and be precluded from making another bid for six months.