JOHANNESBURG (miningweekly.com) – ASX-listed AWE has received an unsolicited, non-binding, indicative and conditional buy-out proposal from the Australian subsidiary of State-owned China Energy Reserve and Chemical Group (CERCG).
CERCG Australia offered to acquire 100% of AWE for $0.71 a share, subject to a number of conditions, including completion of a satisfactory due diligence; securing Foreign Investment Review Board approval; the execution of an implementation agreement; and approval by CERCG's board.
“The indicative proposal includes the acquisition of any shares that are issued by AWE under the recently announced share purchase plan (SPP) that is currently scheduled to close on December 14, 2017,” the company said in a statement.
AWE announced the SPP earlier in November as the second stage of the company’s first equity raising since 2006.
The first stage was the issue of shares equivalent to 15% of the issued capital of AWE to institutional shareholders and new investors, raising about $38-million through a placement of shares at a fixed offer price of $0.50 a share.
AWE then offered to all shareholders the opportunity to participate in the SPP and allowing their investment of up to $15 000 in new fully paid ordinary shares in AWE.
“Having regard to the existence of the SPP, AWE is disclosing receipt of the indicative proposal in advance of the AWE board having concluded its assessment of the proposal; however its initial reaction is that the indicative proposal is not sufficiently attractive to provide access to due diligence,” AWE noted.
CERCG is a Chinese State-owned entity with operations in oil and gas trading, logistics, distribution and supply services located in China.
AWE has appointed UBS AG Australia Branch as financial adviser and Allens as legal adviser.