Cove Energy puts company up for sale
East African oil and gas explorer Cove Energy (LON:COV) today revealed that it has put the company up for sale.
Last month it confirmed that it was setting up a data-room for the potential sale of its 8.5 per cent stake in a large liquefied natural gas project that is being developed in Mozambique.
Today however Cove acknowledged that this minority interest in the Mozambique Offshore Area 1 block, which hosts the LNG project, represents a substantial portion of the company's asset value. As such it believes that the sale of the entire company may be appropriate at this time.
Consequently Cove has decided to conduct a formal sale process for company. This will run alongside the previously announced plan, it said.
The sale process is being overseen by Cove's advisor Standard Chartered Bank.
Cove says the formal sales process will involve a due diligence phase, whereby potential bidders will be given access to the data room and they will be invited to submit their proposals to the company. It then plans to advance discussions with one or more parties with a view to agreeing a recommended offer with one party.
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