A rush of late acceptances helped boost Fosun's subsidiary Transcendent Resources stake to 92.6% of ROC, above the 90% level to trigger a compulsory acquisition of remaining shares, with the 69c per share deal seen as favourable, especially given the decline in oil prices.
In ceasing its coverage of ROC, Macquarie Wealth Management said there could be more deals ahead from Fosun.
"With a market capitalisation of around $US8 billion ($A9.3 billion) and cash balances growing to $5.4 billion (albeit offset by a large debt balance) we believe the Fosun conglomerate's entry into upstream oil and gas via its acquisition of ROC is unlikely to be its last transaction in the Asian oil and gas space," Macquarie said.
"Fosun's recent interim report suggests that ‘the reason for the proposed transaction, is to enable the group to enter the upstream oil and gas industry and acquire oil and gas assets', perhaps highlighting further interest in asset-level transactions once the ROC acquisition has been completed.
"With no major changes to the business planned, we suspect Fosun will use ROC's operator capability across a number of Asian countries (most notably China and Malaysia) and its carried forward tax losses in Australia as a springboard for further opportunities."
