Salamander board to recommend £314m Ophir takeover

Salamander Energy has officially reached an agreement on the terms of its takeover by Ophir Energy, which values the oil and gas explorer at £314m.

Under the terms, which are unrevised from those set out last week, Salamander shareholders will receive 0.5719 new Ophir shares for every Salamander share they own.

The offer values the group at 115.9p per share, a 44.5% premium to the stock's closing price on 24 October, the last business day before the companies confirmed they were in discussions.

Salamander directors intend to "recommend unanimously" that shareholders vote in favour of the deal.

"The board of directors of Ophir and Salamander believe there is compelling strategic logic for a combination of the two businesses that would substantially benefit the shareholders of both companies," Ophir said in a statement on Monday.

"The combined business would have a strong balance sheet, enhanced operating capability in both Africa and South East Asia, and deep expertise across key technical and commercial functions."

The merger would also generate operating synergies immediately across the companies' portfolios.

Shareholders would have exposure to 21 production, development and exploration blocks in South-East Asia, as well as Ophir's assets in Africa.

Salamander's shares were up 1.6% at 92.75p by 08:17 on Monday.