UK 12:24 Wednesday, 11 November 2026
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Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Usually when an all-shares takeover deal is agreed the relative share prices of the two companies follow each other quite closely. That hasn’t been the case though with Salamander Energy (SMDR) which has received a takeover offer from Ophir, which has yet to be accepted.
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Comments
paul
Gary.
agree with the above. long term shareholder @ salamander (unfortunately).
they do however have a habit of clinching defeat from a winning position. last year they blew a chance of closing out a deal for +£1.50 a share, then there was cepsa, ophir may not get over the line.
ophir have placed some ‘room for manoeuvre’ in their offer though, an option to lower the initial bid price is possible. given the difference between the two share prices, wouldn’t bet against ophir lowering their bid.
however, salamander has some great assets, even in a low oil price environment, the current share price has to be considered cheap. i’ve gone back in yesterday @ 64p, it’s got to be worth a punt at that price?
Gary Newman
Paul,
Always hard to know what the intricate details are of these deals as the RNSs only tell us so much – seemed to confirm that ratio of shares (0.5719) but who knows if there are additional clauses. Just seemed worth a go with that sort of gap between the two as not often i have seen that before on all share offers (I remember with EO and PMO for instance that they tracked each other closely even prior to final acceptance). I wouldn’t expect the gap to be so big when it comes to a decision on accepting the deal (in January i think) so either SMDR will have to rise or OPHR to fall further (which with their cash in the bank would seem unlikely it can drop to really silly levels). If it does go ahead as planned, people buying at this level have the chance to either cash in or get some OPHR shares at a good price (or probably even to cash in for a profit before the final decision is made, as the gap closes between the two relative SPs). As always, just my view though and currently oil sentiment isn’t great!
T.Welbourn
Being a shareholder in both companies, perhaps I should sell Ophir to buy Salamander!
Gary Newman
T.Welbourn,
If the deal is approved and at the agreed level of 0.5719 Ophir shares per Salamander one, it is currently a cheap way of getting OPHR shares, but I’d expect that gap to close as not often you see one so wide after an all shares offer with an announced ratio like this. I think it would be good for both companies, one has production and a quick way to increase that, the other has lots of spare cash but no quick route to production (Tanzania and a floating FLNG facility etc is still some way off, assuming FID is agreed), plus recent exploration disappointments.