News

March 24, 2009

Bowleven In Play As Investors Await News Of Possible Takeout Offer

These are testing times for small-cap E&Ps, particularly those in need of capital to realize their potential. For those with cash to spare, however, these are times of great opportunity with bargains to be had as cash-poor competitors see valuations nosedive. AIM-quoted Bowleven is already in play, with a possible cash offer of 150 pence per share on the table since March 18. Given that until last week the share price was languishing below 50 pence a share, the board has confirmed that it is currently minded to recommend a deal at this price – should a firm offer be made.

Following news of the possible offer, the share price has enjoyed a welcome rally, back up to 114 pence a share on Monday morning although still well down on the 400 pence-plus registered in the summer of 2008, marking yet another swing in what has been a turbulent four years since the company joined AIM in late 2004. The Edinburgh company’s early years were marred by a run of dry holes in 2005-6 and an unseemly legal spate with a former CEO. New management, spearheaded by Cairn Energy alumni...