Centrica Extends Deadline For Venture Production’s Shareholders

Centrica entered into an aggressive battle last month for a hostile takeover of Venture Production, an oil company which operates out of the North Sea. Centrica, a Ftse- 100 energy company proposed a buyout of £1.3bn for full control of the company.

Now, it is being reported, that many of the shareholders for the company are anticipated to vote favourable for the hostile takeover to be approved. Centrica has since increased the acceptance deadline to September 14, 2009, giving the shareholders more time to reach a decision.

Centrica will need to secure half of all shareholder votes in order for the takeover of Venture Production to be legal. The takeover was approved just last week by the European Commission, who stated that the hostile takeover was not viewed as detrimental to market competition.

Once clearance from the European Commission was granted, Centrica bought 2.6 million holdings in the market which increased their shares to 31.6%. 

However, Venture Production’s current chief executive is insistent that the deal, an 845 pound per share offer grossly undervalues the company’s stocks.

A decision is expected to be announced by Venture’s shareholders sometime prior to September 14th, the acceptance deadline set forth by Centrica.