Imperial directors also decided to recommend that Imperial convertible bondholders accept the convertible bond offer. “Imperial Energy’s directors are pleased to have been able to reach agreement with OVL and intend unanimously to recommend shareholders accept the proposed offer, which reflects a fair value and marks a premium of 62 per cent since the day before Imperial Energy first announced it had received an approach,” said Peter Levine, Imperial’s executive chairman.

As part of the deal, Imperial shareholders will be entitled to receive 1,250 pence in cash for each Imperial Energy share held, representing a premium of approximately 61.9 per cent to 772 pence, the closing mid-market price per Imperial Energy share on July 11, 2008 (being the last business day prior to the announcement that Imperial Energy had received an approach and the commencement of the offer period).

It also represents a 36.3 per cent premium to 917 pence, the average closing mid-market price per Imperial Energy share from May 6, 2008 (the day the Imperial Energy shares commenced trading ex-rights following the rights issue announced by Imperial on April 16) to July 11, 2008.

R.S. Butola, managing director of OVL, said, “We are delighted that the Imperial Energy directors have taken the unanimous decision to recommend our offer. The acquisition represents an important addition to OVL’s operations, and we believe OVL’s financial strength and technical expertise will further enhance the attractive growth potential of the business in the Tomsk region.”

61.9 per cent

The premium Imperial shareholders will get —1,250 pence in cash for each share held

... contd.