Energees, Regal Petroleum agree on increased offer for up to 70% stake

Energees Investments announced yesterday an increased offer to Regal Petroleum’s (LSE: RPT LN) shareholders proposing to buy 70% of shares at 38 pence apiece in cash; this represents a 58% premium to Energees’ previous offer and a 147% premium to the average price for the month prior to the closing of trading. These terms value Regal’s total share capital at approximately GBP 121.8 mln (USD 75.5 mln) and allow shareholders to either exit at 38 pence in cash or retain an ongoing interest in the company. The company’s directors have terminated Regal’s discussions with Heamoor and Geo-Alliance (who had offered a reverse takeover at 25 pence per share) as they deem Energees’ offer the best available option. Energees already has a commitment from Regal’s directors and some shareholders (holding about 13.35% of all shares) to sell their stakes. The offer is valid until February 20, 2011. Yesterday, the London Stock Exchange resumed trading in Regal’s shares, which was suspended since January 17 when Heamoor and Geo-Alliance announced their offer for the company.