More support for Parkmead’s bid to take control at Deo

By PERRY GOURLEY
Published on 09/06/2012 00:00

ANOTHER institutional shareholder has backed Parkmead in its bid to take control of Aberdeen oil explorer Deo Petroleum.

The Artemis Alpha trust, which owns 2.47 per cent of Deo, has said it will vote in favour of the all-share offer which values the firm at around £11 million at Parkmead’s current share price.

Parkmead, headed by Dana Petroleum founder Tom Cross, now has support covering 58.7 per cent of shares. It needs 75 per cent approval for the deal to go through.

On Thursday, the Rab Energy Fund gave an irrevocable undertaking over its 8.1 per cent stake in Deo.

Parkmead and Deo already work together to explore opportunities in the North Sea. Cross has said the deal would add “significant value” for shareholders of both companies.

David Marshall, chief executive of Deo, which floated in late-2010, believes investors would see “value growth from the creation of one of the most experienced and innovative companies operating in the sector”.