Rab Energy fund says yes to Parkmead’s bid for Deo

PARKMEAD moved closer to securing its bid target Aberdeen-based Deo Petroleum yesterday after a major shareholder confirmed its backing for the deal.

The Rab Energy Fund has given an irrevocable undertaking over an 8.1 per cent stake in Deo. It means Parkmead, headed by Dana Petroleum founder Tom Cross, now has support from shareholders owning more than 56 per cent of the company. It needs 75 per cent approval for the all-share deal which is worth around £11.4m at the current Parkmead share price.

Meanwhile, Deo’s full-year results yesterday showed operating losses fell to £577,000 from £797,000 the previous year. The group had £2.2m of cash and cash equivalents as at 31 December 2011 and is debt free.