Smart Holding’s increased offer for Regal receives shareholder approval

Regal Petroleum (LSE: RPT LN) announced yesterday in a press release that Smart Holding’s cash offer at 38 pence per share had become wholly unconditional, with 54.97% of shareholders giving approval as of March 3. The first condition for the deal was fulfilled on February 18 after 51.7% of Regal shareholders submitted acceptances (making the offer unconditional as to acceptance). The second and final condition was the approval of the change of control by at least 50% of shareholders by March 4. Smart Holding has now also entered into a Relationship Agreement with Regal, according to which if it controls over 50.1% of shares it is entitled to nominate 3 out of 7 directors of the board. Antonina Davydenko: We expect the deal to be finalized shortly as Smart has claimed it would settle the technical details of the transaction by March 8. We also expect Smart to resolve Regal’s license dispute and to resume production in the nearest future, as Regal is losing at least USD 2 mln in sales every month due to the downtime.