Beach Energy makes rival takeover offer for Warrego Energy

Beach Energy Lt., Adelaide, made a $246 million (Aus.) cash takeover offer for Warrego Energy Ltd., Sydney, on the heels of last week’s announced proposal for Warrego to merge with Strike Energy Ltd.

Beach signed a scheme implementation deed with Warrego under which Beach will acquire all the issued shares in Warrego for $0.20 (Aus.) cash/share plus any net proceeds received from the sale of Warrego’s Spanish assets, by way of a members’ scheme of arrangement.

Beach’s offer overrides the proposal made by Warrego’s Perth basin Erregulla gas field JV partner Strike Energy of 0.775 new Strike shares for each Warrego share held and a contingent scheme consideration if Warrego’s Spanish assets were sold within 12 months (OGJ Online, Nov. 10, 2022).

Warrego’s board has unanimously recommended that its shareholders vote in favor of the Beach offer in the absence of a superior proposal and subject to an independent expert’s confirmation that it is in the best interests of Warrego shareholders.

Beach said the proposed acquisition adds development opportunity for new gas supply beyond its Waitsia Stage 2 LNG volumes and forthcoming gas exploration drilling onshore Perth basin.

Completion is targeted for Mar. 8, 2023.