U.K. utility Centrica PLC (CNA.LN) Tuesday welcomed the recommendation of the board of Venture Production PLC (VPC.LN) to accept its GBP1.3 billion bid for the U.K. oil and gas producer.

The offer will become unconditional Thursday, following the settlement of the purchase of Venture shares announced over the past few days, Centrica added.

"We are pleased that the Venture board has recommended that its shareholders accept our offer, in the event that it is declared wholly unconditional," Centrica Chief Executive Same Laidlaw said.

Centrica already either owns, has acquired subject to settlement or has received valid acceptances equivalent to 58.7% of Venture shares, Centrica said late Monday.

Earlier Tuesday, Venture's board said it was recommending the 845-pence-a-share offer to shareholders, even though it said the offer still undervalued the company.

Venture had been stiffly resisting the offer that Centrica launched last month.

Centrica has long been on the hunt for gas resources to make up for its declining reserve base so as to supply its 15.5 million gas and electricity customers.

"The deal sees us continuing our investment in the North Sea, which is good news for our customers and shareholders. It further reduces our overall exposure to volatile movements in wholesale gas prices and helps secure U.K. energy supplies," Laidlaw added.

At 1246 GMT, Centrica shares were up 0.7% at 236 pence.

-By Selina Williams, Dow Jones Newswires +44 207 842 9262; selina.williams@dowjones.com
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