Private equity firm makes A$530m cash bid for Sino Gas
PERTH (miningweekly.com) – ASX-listed Sino Gas & Energy has received a A$530-million cash offer from private equity firm Lone Star, which the Sino board has unanimously recommended.
Lone Star is offering Sino shareholders 25c a share in cash for their holdings in the ASX-listed company, which was a 19% premium to the company’s closing price on May 30, and a 32% premium to the one-month volume-weighted average price of Sino shares.
“The 100% cash consideration represents an attractive premium to recent trading prices, and provides certainty of value for Sino shareholders,” said Sino MD Glenn Corrie.
“While the Sino directors remain of the view that the business and assets have significant potential, they acknowledge that the cash consideration provides shareholders with cash certain value now versus the future risks and uncertainties associated with the business.”
Sino holds a portfolio of unconventional gas assets in China holding a 1P reserve of 362-billion cubic feet and a 2P reserve of some 552-billion cubic feet, at the end of 2015. The company is currently running two pilot plant operations in China, which started in 2014 and 2015 respectively.
The takeover offer is subject to a number of conditions, including Foreign Investment Review Board approval, shareholder and court approvals, as well as an independent expert concluding that the offer was in the best interest of Sino shareholders.
A shareholders meeting is expected in late August or early September, with the deal likely to be implemented by September.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation