Lakes Oil NL, Melbourne, has made an off-market takeover offer to acquire all of the issued shares in Rawson Oil & Gas Ltd., Sydney.
Lakes is offering 15 shares of its stock for every 1 share of Rawson, an offer that values Rawson at $3.75 million (Aus.).
The Rawson board has unanimously recommended that its shareholders accept the offer in the absence of a superior offer.
Lakes has already entered a pre-bid acceptance deed with major Rawson shareholders in respect of 19.99% of the Rawson shares on issue.
Lakes also has agreed to provide Rawson with a $750,000 secured working capital facility, subject to a number of conditions including receipt by Rawson of all necessary regulatory waivers, determinations, or consents.
If the takeover is successful, Rawson shareholders will hold as much as 5.6% of Lakes Oil.
Rawson Director Richard Ash will be offered a position on the Lakes board as soon as Lakes has acquired more than 50% interest in Rawson shares and the offer has become unconditional.
Lakes said the acquisition of Rawson will enable the companies’ exploration positions to be integrated and more efficiently pursued. Specifically, there will be a focus on both the near-term and longer-term potential of opportunities in the onshore Otway basin of South Australia including the soon to be drilled Nangwarry-1 wildcat in PEL 155.
Lakes will also gain access to Rawson’s two exploration licenses along the north coast of Papua New Guinea.