INTEROIL has urged its shareholders to vote for the proposed transaction with ExxonMobil.
The company in a market release urged the shareholders to follow the recommendations by the independent proxy advisory firms – Institutional Shareholder Services Inc and Glass Lewis and Co (Glass Lewis) – and vote for the proposed transaction during the special meeting on Feb 14.
To be counted, all proxies must be received by 12pm on Feb 10, the company said.
In its report last Friday, Institutional Shareholder Services stated: “A vote for the proposed arrangement is warranted based on a review of the terms of the transaction.
“In particular, the reasonable strategic rationale, the superior transaction terms (compared to the Oil Search agreement), and the improved disclosure and transaction review process.
“It appears that the board conducted an adequate strategic review process that resulted in significant disclosure improvements and that addressed concerns raised by the Court of Appeal.”
Last Friday, Glass Lewis stated in its report: “The board received a new fairness opinion in connection with the amended arrangement that provides meaningful disclosure and indicates that the proposed consideration appears favorable relative to the implied value of the company as derived in discounted cash flows and precedent transactions analyses.
“The proposed consideration also implies a significant premium to the unaffected closing price of InterOil shares prior to announcement that the company had agreed to be acquired by Oil Search.
“Based on the forgoing factors and the support of the board, we believe the proposed transaction is in the best interests of shareholders.” The National