Brit oil explorer Regal accepts £120m foreign offer

Updated: 16:31 EDT, 6 February 2011

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British oil explorer Regal Petroleum is set to fall into foreign hands after accepting an offer valuing it at £120m.

Ukrainian firm Energees raised its bid from 24p a share to 38p, meaning it will pay £85m for a 70pc stake.

It trumped a 25p-a-share offer from Cypriot financing firm Haemoor and Ukrainian oil explorer Geo-Alliance.

Good value: It trumped a 25p-a-share offer from Cypriot financing firm Haemoor and Ukrainian oil explorer Geo-Alliance

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Regal shares were suspended last month at 31.25p.

Chairman Keith Henry said it was a good deal for shareholders ‘against a background of operational, legal and funding challenges faced by the company’.

Energees is part of Ukrainian firm Smart Holding Group, with interests in Metinvest, the country’s largest steelmaker.

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