Amerisur launches strategic review that could lead to sale

South America-focussed oil and gas producer and explorer Amerisur Resources announced on Friday that, following the receipt of interest in the company and its assets from other industry participants, and in light of the “high level” of recent activity in the Colombian exploration and production sector, it had decided to conduct a formal review of the strategic options available to the company to maximise value for shareholders.

The AIM-traded firm said the options included, but were not limited to, the potential sale of the business through the launch of a formal sales process, or the farm-out or sale of one or more of its assets.

It confirmed that, at the time of the announcement, it had received a non-binding proposal regarding a potential sale of the company, as well as a number of other indicative proposals regarding the sale of certain assets of Amerisur.

“The board has appointed BMO Capital Markets as its financial adviser with regards to the formal sales process and as an independent financial adviser,” the board said in its statement, adding that Stifel Nicolaus Europe had been appointed as joint financial advisor to the company.

It said parties with a possible interest in making a proposal should contact BMO Capital Markets.

Amerisur said the Takeover Panel had granted a dispensation, so that any interested party participating in the formal sale process would not be required to be publicly identified as a result of the announcement, and would not be subject to the 28-day deadline for as long as it was participating in the formal process.

Following the announcement on Friday, Amerisur confirmed it was now considered to be in an ‘offer period’.

“Any party wishing to participate in the formal sales process will be required to enter into a non-disclosure agreement with the company on reasonable terms satisfactory to the board and on the same terms, in all material respects, as other interested parties before being permitted to participate in the process.”

Following such an agreement, Amerisur said it intended to provide interested parties with information on itself, following which those parties would be invited to submit proposals.

“Shareholders are advised this is not a firm intention to make an offer … and there can be no certainty that any offers will be made as a result of the formal sales process, that any sale or other transaction will be concluded, nor as to the terms on which any offer or other transaction may be made.”