The battle for control of Perth basin explorer Warrego Energy Ltd., Perth, has gathered pace with two counter offers Dec. 2.
Beach Energy Ltd. raised its cash offer to $0.25/share (Aus.) from $0.20/share (Aus.) (plus any net proceeds received from the sale of Warrego’s Spanish assets).
This topped a cash offer the previous day from Hancock Prospecting Pty Ltd., Perth, of $0.23/share (Aus.).
Within hours of Beach’s counteroffer, Hancock raised its offer to $0.28/share (Aus.).
In overriding the second Beach bid, Hancock said its new offer represented a 12% premium to the upfront consideration under Beach’s revised offer.
Hancock added that the increased offer price is 40% higher than Beach’s original offer. It also will provide Warrego shareholders with upfront certain value for the Spanish assets, whereas Beach’s revised offer does not.
“Hancock’s new offer, unlike Beach’s revised offer, is not conditional on Warrego shareholders delivering a particular level of control to Hancock,” the company said.
The new Hancock offer values Warrego at $347.6 million (Aus.).
It remains to be seen whether Beach will further increase its offer and/or whether the original bidder, Strike Energy, will adjust its offer.
Warrego’s assets include a 50% interest in onshore North Perth basin permit EP469 which includes the West Erregulla gas discovery. In Spain Warrego holds an 85% working interest in the Tesorillo gas project in the Cadiz region and a 50.1% working interest in the El Romeral gas-to-power plant in the Seville region.