Maurel et Prom to buy Wentworth Resources in £61.7m deal

Upstream natural gas production company Wentworth Resources surged on Monday after agreeing to be bought by France’s Maurel et Prom in a £61.7m deal.

Under the terms of the acquisition, M&P will pay 32.5p per share in cash, which is a premium of around 30% to the closing Wentworth share price on Friday.

M&P is the operator and majority owner of Wentworth’s sole asset in Tanzania, Mnazi Bay.

Wentworth chairman Tim Bushell said: "The board of Wentworth is pleased to recommend the acquisition by M&P which represents a substantial premium to Wentworth's prevailing share price and offers an opportunity for our shareholders to realise this value in the near term for cash.

"Wentworth has created significant value for shareholders over recent years through share price appreciation alongside substantial capital return from both dividends and share buybacks. Having pursued the company's stated strategy of further growth in Tanzania in recent years, the board believes the offer from M&P delivers immediate value to our shareholders at an opportune time."

He added that this was "a logical combination that we believe is in the best interests of our shareholders, wider stakeholders and of Tanzania".

At 1345 GMT, Wentworth shares were up 32% at 33p.