JOHANNESBURG (miningweekly.com) – The board of ASX-listed oil and gas company AWE on Wednesday said that it continued to recommend that shareholders accept the offer from multinational industrial conglomerate Mitsui, which would declare its bid unconditional if its interest exceeds 50.1% by March 14.
Mitsui is offering AWE shareholders A$0.95 a share in cash in a bid to gain a 50% stake in Australia’s biggest onshore conventional gas find in 40 years.
Following the withdrawal of the gas multinational China Energy Reserve and Chemicals Group’s (CERCG’s) takeover offer, Mitsui’s offer is currently the only offer available to AWE shareholders for their shares.
“Mitsui notes the Waitsia gas project [in Western Australia] is at an important juncture in its development and believes it is in the best interests of all stakeholders that the offer is completed as soon as possible,” the Mitsui statement said on Wednesday.
If Mitsui declares the offer unconditional, it intends to provide accelerated payment terms such that AWE shareholders will be paid within seven business days after Mitsui receives a valid acceptance in accordance with the terms of the offer.
Mitsui said in a separate statement that it encouraged shareholders to accept the offer, but recognised that some investors in AWE might be unable or unwilling to accept the offer until it became unconditional.
“Mitsui has, therefore, established an institutional acceptance facility to provide eligible shareholders with the ability to register their support for the offer and their intention to accept the offer before it becomes or is declared unconditional.”
“It is the intention of AWE directors to accept, or procure the acceptance of, the Mitsui offer in respect of all AWE shares that they own or control, again in the absence of a superior proposal,” AWE said in a statement to shareholders.
An independent expert’s report prepared by financial services consultancy Grant Thornton has valued AWE shares in the range of $0.78 to $1.06, and has concluded that the Mitsui offer is fair and reasonable, AWE added.