Unless the situation changes, private equity-backed hydrocarbons refiner and marketer Prax does not intend to raise its bid for the upstream company Hurricane Energy, it said in a London stock exchange statement April 24.
All of Hurricane’s directors who hold shares are in favour of the deal as well as two of Prax’s shareholders, Crystal Amber and Kerogen. Two independent, third-party proxy advisory firms have also recommended it.
Prax is in negotiations to acquire a number of producing assets and said there were more sellers than credible buyers in the market today. Prax has a strong strategic imperative to increase its upstream business, given the synergies that may bring to its downstream business, it said.
In its own statement the same day, Hurricane CEO Antony Maris said the proposed transaction was “in the best interests of our shareholders.”