Jubilant Energy NV's shareholders to decide company's future after takeover offer

Shares in Jubilant Energy NV surged over 18% early on Tuesday after the oil and gas company said it will hold an extraordinary meeting early next month when shareholders will vote on a proposal to cancel its shares from trading on AIM.

On 6 November, shareholders will also be asked to decide whether the company should accept a 0.60p per share cash takeover offer from Jubilant Energy (Holdings) BV, which holds an 85% stake in the group, which values the group at £249.8m.

The offer from the company’s main shareholder is subject to Jubilant Energy NV cancelling its shares from AIM, which shareholders will have to approve next month. However, they will not vote on the proposed offer as they will be asked to individually decide whether to accept it or not.

In the year to 31 March, Jubilant Energy NV reported pre-tax loss of $134.8m compared with a $3.4m loss in 2014, after booking a $121.9m impairment against its Indian project of Deendayal and Sanand-Miroli because of delays in starting production and lower-than-expected gas prices.

As a result, the London-listed company launched a strategic review indicating it would consider all the options at its disposal, including selling its assets.

However, the group’s debt pile, which stood at $514.4m at the end of March compared with cash balance of $21.6m, has complicated its quest to find a buyer.

Jubilant Energy shares were up 18.91% to 0.535p at 1019 BST on Tuesday.