Strike won't increase the offer for Talon
PERTH (miningweekly.com) – ASX-listed Strike Energy on Monday said it would not increase its bid for fellow-listed Talon Energy, in the absence of a superior offer.
Under the current scheme, Talon shareholders will receive 0.4828 new Strike shares for each Talon share held. In parallel with the scheme, Talon will look to demerge its Mongolian assets to the benefit of its shareholders to potentially deliver significant value.
Strike said in a statement on Monday that while the acquisition of Talon was both strategically compelling and logical for both companies, the transaction was not critical for Strike’s forward strategy.
“Should the scheme not be successfully implemented and the implementation deed is terminated, Strike will resume its normal role as operator of L23/EP447 where the joint venture has recently increased the size of the near-term capital programme and Strike will call all existing drawn funds from the secured convertible facility that was established in order for Talon to meet its commitments during the scheme process.
“If all drawn funds and interest are not repaid within 60 days, Strike may enforce its security over Talon’s interest in the Walyering gas project,” the suitor said in a statement.
Talon told its own shareholders that the 60-day period would be sufficient for the company to complete any refinancing or capital raising required to repay amounts owing under the secured convertible facility.
The Talon directors have, however, unanimously recommended that shareholder vote in favour of the transaction, in the absence of a superior bid.
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