Mineral Resources Ltd. (MinRes) ruled out a takeover bid for Warrego Energy Ltd., a move that leaves Warrego’s North Perth basin JV partner Strike Energy Ltd. and Hancock Prospecting as the two remaining bidders.
MinRes managing director Chris Ellison said the company had acquired, on-market, a 19.2% strategic interest in Warrego, but that it could not justify joining a bidding war because it believes the value of gas assets in the Perth basin is now overinflated.
Strike Energy, which holds 19.9% of Warrego, is maintaining its all-scrip offer for Warrego at a one-for-one share offer.
Strike is operator of the West Erregulla gas discovery in the North Perth basin in a 50-50 partnership with Warrego.
Hancock Prospecting, a 25.9% stakeholder in Warrego, increased its all-cash takeover for the company to $0.36 (Aus.) a share from $0.28 (Aus.) a share early this month which values Warrego at $440 million (Aus).
Hancock’s latest offer is conditional on gaining at least 40% of Warrego shares which means it needs another 14.1% to reach that threshold.