Hancock Prospecting Group has made an all-cash taker offer of $280 million (Aus.) for onshore Perth basin explorer Warrego Energy Ltd.
The $0.23 (Aus.)/share offer, made through the group’s Hancock Energy division, eclipses an offer of A$0.20 (Aus.)/share from Beach Energy 3 weeks ago, which in turn came over the top of the original takeover bid from Warrego’s Perth basin JV partner Strike Energy of $0.186 (Aus.)/share.
Hancock’s offer does not contain any minimum acceptance provisions which means that Hancock will buy shares in Warrego even if it does not gain control.
Warrego had agreed to the Beach offer of a proposed scheme of arrangement that values Warrego at $246 million (Aus.) unless a better offer materialized.
Hancock Energy director Stuart Johnston said the company’s offer was compelling for Warrego shareholders in the light of earlier proposals.
A bidder’s statement has been lodged with the Australian Securities Exchange and Johnston encouraged Warrego shareholders to accept the offer.
Johnston said Hancock’s offer was pitched at a 67% premium to Warrego’s 6-month volume-weighted average share price before the takeover proposals were made public.
The key prize in the takeover battle is Warrego’s 50% interest in the West Erregulla gas discovery.
Strike Energy holds the remaining 50% of West Erregulla, while Beach Energy holds 50% interest in nearby producing Waitsia gas field.
Hancock has a 49.9% shareholding in east coast gas producer Senex Energy and is the largest shareholder in Mineral Resources Ltd., whose subsidiary Energy Resources has a stake in onshore Perth basin gas player Norwest Energy Ltd.