Sheikh Hamad Bin Jassim Bin Jabr Al-Thani
Sheikh Hamad Bin Jassim Bin Jabr Al-ThaniReuters

Shares in UK oil company Heritage Oil soared more than 22% after it announced a takeover offer from a Qatari fund.

Energy Investments Global, a wholly-owned subsidiary of Qatar's Al Mirqab Capital SPC, agreed to acquire Heritage Oil for £924m ($1.6bn, €1.1bn) or 320 pence per share, representing a 25% premium to the closing price on 29 April.

Following the news, Heritage Oil shares are trading up 22.46% as at 11:04 am GMT.

"The Independent Committee of Heritage's Board believes that the Offer represents an attractive and certain value for Heritage Shareholders, having considered the risks, rewards and timescales associated with the realisation of value from Heritage's portfolio of assets," Michael Hibberd, chairman of Heritage's board, said.

"The Independent Committee therefore intends to recommend the Offer to Heritage Shareholders."

Heritage's largest shareholder, Anthony Buckingham, who owns 34% of the company, will retain a 20% stake in the company for five years, under an agreement with Al Mirqab.

Al Mirqab is owned by Qatar's Sheikh Hamad Bin Jassim Bin Jabor Al Thani and his family. Sheikh Hamad, who was the former CEO of the Qatar Investment Authority, had led the sovereign wealth fund in its growth as one of the most sought-after investors in the world.

"The acquisition of Heritage provides Al Mirqab with access to a high growth, producing asset base in Nigeria and a diverse international exploration portfolio," the company said.

Al Mirqab will fund the acquisition from its cash resources.

Heritage is primarily operating in Nigeria, where its oil output is steadily growing. It also has projects in Tanzania and Papua New Guinea.

For the year ended 31 December 2013, the company reported a net loss of £383.5m, compared with a profit of £260m in the previous year, primarily due to losses on asset sales. Yearly revenues increased to £431.9m from £8.8m.