Strike Energy makes new takeover bid for Warrego Energy

Strike Energy Ltd., Perth, continues its effort to acquire Warrego Energy Ltd. with a new all-scrip takeover offer that implies a $409 million (Aus.) valuation for Warrego.

Strike’s move is an off-market takeover bid to acquire all outstanding Warrego shares on a one-for-one basis.

The implied offer price is $0.335 (Aus.) per Warrego share based on Strike’s last closing price, which represents a 19.5% premium to Hancock Prospecting’s latest proposal, and a 61.8% premium to Warrego’s undisturbed price (based on the 30-day volume weighted average price prior to Strike’s original proposal Sept. 16).

Strike’s new offer is subject only to “no prescribed occurrences” and has no minimum acceptance condition and no material adverse change condition.

Strike currently holds 19.9% interest in Warrego following share purchase agreements with various Warrego shareholders earlier in December.

Strike’s original offer of 0.775 Strike shares for each Warrego share began a round of bidding from Beach Energy and Hancock Prospecting.

Beach withdrew from the contest leaving Hancock’s all cash offer of $0.28 (Aus.) a share as the highest bid.

At the time, Warrego intended to recommend Hancock’s offer in the absence of a superior proposal. With Strike’s new offer, Warrego will now consider the all-scrip Strike takeover bid and the Hancock all-cash takeover offer to decide which offer is superior.