Centrica take major stake

Aug 25 2009 by Iain Laing, The Journal

BRITISH Gas owner Centrica has secured a breakthrough in its £1.3bn takeover battle for North Sea oil and gas firm Venture Production.

Centrica has amassed a controlling stake after purchasing 12.6 million shares in morning trading to lift its holding by 8.4% to 40.1%.

With acceptances from other shareholders for its takeover offer accounting for a further 10%, Centrica effectively holds 50.3% of the company’s shares. The next threshold of 75% would allow it to delist Venture and implement plans without having to seek approval from other shareholders.

The energy firm has launched a bid for the Aberdeen-based company in order to boost its gas production and reduce dependence on volatile wholesale markets.

Centrica currently produces around 35% of its energy needs out of its own resources, although this should increase to 45% with its acquisition of a 20% stake in nuclear power firm British Energy. Buying Venture would mean Centrica could supply 60% of its energy from its own assets and resources.