Mitsui goes unconditional on AWE takeover bid

Japan combine Mitsui & Co has declared its takeover bid for Sydney-based AWE Ltd. to now be unconditional following the acquisition of 51.89% of AWE’s shares.

Japan combine Mitsui & Co has declared its takeover bid for Sydney-based AWE Ltd. to now be unconditional following the acquisition of 51.89% of AWE’s shares.

Mitsui made an unsolicited, nonbinding, and conditional proposal in February to acquire 100% of AWE for 95¢ (Aus.)/share, valuing the company at $602 million (Aus.). The offer was subject to a 50.1% minimum acceptance condition and is not subject to any regulatory approvals or financing conditions. Mitsui began from a base interest of 3.01% of AWE’s shares.

This week Mitsui’s interest increased to more than 50.1% and the offer became unconditional and automatically extended by 14 days. It is now scheduled to close on Apr. 18.

Mitsui has urged AWE shareholders to accept the offer without delay.

AWE’s board also has recommended that shareholders accept the offer in the absence of a superior bid. This recommendation was endorsed by an independent expert appointed by AWE.

Mitsui says it will provide accelerated payment terms such that AWE shareholders will be paid within seven business days after Mitsui receives a valid acceptance of the offer.

The takeover means that Mitsui will gain access to AWE’s current projects including the Waitsia onshore gas project in Western Australia, the Casino offshore gas project in western Victoria, and the Ande Ande Lumut offshore oil project in Indonesia.

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