PERTH (miningweekly.com) - Mining giant BHP Billiton has declared its takeover offer for US-based Petrohawk Energy Corporation free of conditions, after satisfying all conditions, including a minimum shareholding at the end of the offer period.

BHP said over the weekend that at the end of the offer period, on August 19, the company had acquired a 97.4% shareholding in Petrohawk.

The mining giant said that it now expected to effect a short-term merger under Delaware law as quickly as possible, and at the effective time of the merger, each Petrohawk share not held by BHP would be converted into the right to receive the offer price of $38.75 a share, without interest, and less any applicable withholding taxes.

Petrohawk would be the surviving corporation in the merger, and would become an indirect wholly owned subsidiary of BHP Billiton. Following the merger, its shares would also be delisted, and it would cease trading on the New York Stock Exchange.

BHP announced a $12.1-billion play for Petrohawk Energy in July, giving it access to oil and shale gas assets in Texas and Louisiana. BHP offered $38.75 a share, which values the US shale gas producer at $15.1-billion, including the assumption of net debt.

The transaction provided BHP with operated positions in the Eagle Ford and Haynesville shales, as well as the Permian basin.

Petrohawk’s assets cover around one-million net with an estimated 2011 production of around 950-million cubic feet equivalent per day, or 158 000 barrels of oil equivalent per day.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.