Strike Energy accepts Hancock’s offer for Warrego shares

Strike Energy Ltd. has ended its attempt to acquire West Erregulla joint venture partner Warrego Energy Ltd., instead accepting rival bidder Hancock Energy’s offer of $0.36/share (Aus.) for Strike’s interest in Warrego.

Strike held a 25.99% interest in the target company, equating to $116 million (Aus.) in cash from the sale to Hancock.

Strike had opted for an all-scrip deal for control of Warrego with a final offer in January of one of its own shares for every Warrego share held.

Strike said it has been able to ‘extract significant value’ for its Warrego interest by pushing up the rival cash offer from the original $0.20/share (Aus.) offered by Beach Energy at the start of bidding war.

Hancock will move to a 78.16% shareholding in Warrego Energy with the takeover offer remaining open until Feb. 24.

Strike said it now welcomed Hancock as a 50% joint venture partner in the proposed West Erregulla gas field development. It said Hancock was a well-funded and motivated party to pursue completion of the project.