By Jon Harding,
Published: Monday, November 13, 2006
Calgary-based Centurion Energy International Inc. is up 84¢ to $11.92 mid-afternoon after receiving a $12-per-share from United Arab Emirates-based Dana Gas PJSC.
At least one brokerage doubts Royal Dutch Shell PLC will make a competing bid for Calgary-based Centurion. In a research note to clients, Canaccord Adams analyst Terry Peters said Dana’s offer is both fair and full, and the brokerage raised its target for Centurion from $10 to $12, lowering its rating on the stock from “buy” to “hold.”
Sharjah, U.A.E.-based Dana is a natural gas company that operates in the Arabian Gulf and is listed on the Abu Dhabi stock market. By acquiring TSX-listed Centurion for about $1.25-billion, Dana will gain holdings in Egypt, Tunisia and offshore West Africa.
Canaccord Adams said it was surprised Royal Dutch Shell did not emerge as the suitor for Centurion — which said on Oct. 30 it had entered unsolicited talks — because the two have been joint-venture partners exploring for gas in Egypt since March, drilling five wells together.
Royal Dutch Shell is approaching the point of having to make a decision about paying Centurion another US$20-million to renew the partnership.
“RDS was in a perfect position to [buy Centurion] … it had access to all the technical data on the blocks,” Mr. Peters wrote. He suggested the bid from Dana, which needs new gas supplies because it is locked in a pricing dispute for supplies from Iran, seems even more aggressive given the fact RDS can keep its 50% interest in the Egyptian prospect for just US$20-million, or walk.
“Given that RDS wanted to negotiate around its US$20-million commitment, it would seem odd that they would step up and outbid Dana’s full offer price, particularly now when there is a right by Dana to match any superior competing offer. … We anticipate Centurion shares will trade just under the offer price,” Mr. Peters wrote.
This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.