SINGAPORE and PORT MORESBY, Papua New Guinea – InterOil Corp. and Exxon Mobil Corp. have agreed to extend the outside date of the current arrangement agreement to the close of business on Dec. 21.
InterOil’s Independent Transaction Committee, which comprises four independent directors, will undertake a detailed and thorough review process relating to the proposed transaction, with the support of independent legal counsel and BMO Capital Markets, an independent financial adviser.
The deal has suffered setbacks after initially being approved by the Supreme Court of Yukon in October, with InterOil saying the court called the deal fair and reasonable. The Court of Appeal of Yukon overturned the decision in November after allowing an appeal lodged by InterOil founder and ex-CEO Phil Mulacek.
According to a September report on the matter by Bloomberg, Mulacek founded InterOil in the 1990s and stepped down in 2013, but with a 5.35% stake, remains the company’s third-largest holder. He objected to the multi-billion dollar takeover bid when it was first announced in July, claiming that Exxon was not adequately compensating the shareholders.
A Bloomberg report from July said Mulacek reported that Exxon had offered “up to three times as much for the company in negotiations he oversaw… Although the collapse of energy prices justified a reduction in Exxon’s more recent offer, he said InterOil leaders should have pressed for more money.”