Regal Petroleum accepts Energees' improved bid

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Regal Petroleum, the British exploration company, yesterday recommended a takeover by Energees Investments after the investor raised its offer by 58 per cent.

Energees, a bid vehicle controlled by the Ukrainian conglomerate Smart Holding, had initially bid 24p per share for the UK explorer in December. The firm has now offered 38p a share in cash for 70 per cent of Regal for about £85m. The offer will run until 20 February.

Denis Rudev, the finance director at Smart Holding, said that Regal would continue to be listed on the stock market in London, in an effort to build a "reputation and track record" with investors before it seeks a potential flotation of Metinvest. The Ukrainian company has a 25 per cent stake in the metals group.