(Reuters) - UK-based RockRose Energy Plc said on Monday it had agreed to be bought by privately held energy firm Viaro Energy in a deal valuing it at 247.6 million pounds ($309.08 million), as the industry consolidates in the face of the coronavirus crisis.
Viaro Energy, which operates in Europe and the Middle East, will pay 1,850 pence for each RockRose share, pushing the stock 62% higher to 1,831 pence by 0750 GMT.
The takeover will help Viaro Energy expand its presence in the UK Continental Shelf, which includes parts of the North Sea, the North Atlantic, the Irish Sea and the English Channel.
Founded in 2015, RockRose focuses on onshore and offshore production and infrastructure projects.
The deal, which has the unanimous backing of RockRose’s board, comes at a time when the oil and gas industry deals with a fall in demand as the COVID-19 crisis hammers economic growth across the world.
In the face of a plunge in oil prices earlier this year, Rockrose said in April that its total expenditure in 2020 would be over $100 million lower than its original budget.
Reporting by Muvija M in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu