Wentworth shares rally 25% as $81 million takeover edges closer

Shares in Wentworth Resources (LSE: WEN) jumped 25% this morning after the Tanzania-focused natural gas producer said all parties are working to satisfy government approval conditions regarding Etablissements Maurel & Prom SA’s $81 million takeover offer.

The deal was supported by 75% of Wentworth shareholders in February, and discussions have been ongoing since to secure sign-off from Tanzanian authorities. Over the last two weeks, both companies have attended meetings with the Tanzanian Petroleum Development Corporation to address any outstanding concerns.

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Wentworth has now arranged for the Jersey Court to consider approving the scheme of arrangement on December 19th. It said all parties are striving to satisfy Tanzanian conditions prior to the hearing.

After facing “a number of concerns” from the Tanzania Fair Competition Commission in June, today’s update signalled a breakthrough in the long-running saga. Wentworth shares are now only 2.2% down across 2023.