Central Petroleum rejects Macquarie takeover offer

Shares in Central Petroleum shot up 35pc after it knocked back a takeover but left the door open to a revised offer.

Central Petroleum’s managing director Richard Cottee.

Shares in the Richard Cottee-led energy junior Central Petroleum have shot up 35 per cent after the group said it had rejected an initial play for control from Macquarie Group, but left the door open to a revised offer.

The suitor already has a 2.3 per cent holding in Central Petroleum (CTP) through subsidiary Macquarie Bank, which has served as the chief financier of the target’s exploration and development activities.

Macquarie’s (MQG) offer came in at 17.5c share, up 30 per cent on the prior traded price of 13.5c.

In response, the Northern Territory-focused Central Petroleum saw its shares surge 35 per cent to 18.5c at 12.30pm (AEDT) as investors hope for an enlarged offer from the suitor once due diligence is carried out.

“The board of directors of the company has determined that the proposal is not in the best interests of shareholders,” the target said in a statement.

“In the circumstances, however, the board considers it appropriate to grant due diligence access, subject to appropriate documentation, to provide Macquarie every opportunity to reconsider its proposal.”

The initial offer represented a valuation of $75.8 million.

Central Petroleum has long drawn the limelight given its grand ambitions in the Northern Territory, with the appointment of high-profile energy sector executive Mr Cottee in 2012 further sharpening the spotlight.

Mr Cottee gained fame as he led Queensland Gas Company from a minnow to an eventual sale to BG Group for $5.7 billion in 2008.