ENI Secures Burren Deal

Energy group ENI has today announced that it has reached consensus with the board of directors of Burren Energy for a takeover approach, valued at £1.74 billion in a move that had been widely expected for a number of weeks from industry insiders after several previous failed acquisition attempts.

The Italian energy group has today announced that it has agreed to make payment of around £12.30 for each share in AIM listed Burren Energy to acquire its business and assets, particularly in relation to its highly profitable operations in Central Asia, the Middle East and North Africa.

Industry analysts had been expecting an accepted bid over the last few weeks, with ENI having already had bids of £10.50 and £12.00 per share rejected by the Burren board of directors. Meanwhile shares in Burren today rose beyond the price of the takeover offer in anticipation of the move being put before shareholders for ratification.

Speaking today on the bid Burren announced that the offer was representative of a 50% premium on average share value over the last quarter, the difference of which will now be held in reserve under the share premium account according to company law requirements.

As a result of rising oil prices Burren has been seen as a growingly profitable enterprise, particularly considering its diverse geographic reach and strong foothold in the fledgling Turkmenistan market, which it is thought could see significant growth over the coming decades.

Additionally, the company’s holding in rapidly expanding Hindustan Oil is thought to be one of its more attractive portfolio holdings, and one which almost certainly spurred the takeover approach from the Italian energy group. It remains to be seen whether the shareholders will clear the deal, as it currently widely expected in the industry.

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