Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of ASX-listed oil and gas company AWE rose by 16% on Wednesday after the company rejected an unsolicited takeover offer from Lone Star Japan Acquisitions.
AWE told shareholders that Lone Star Japan Acquisitions, on behalf of Lone Star Fund, had offered to acquire all the shares in AWE for a cash consideration of 80c a share.
With AWE currently having more than 526.7-million shares on issue, the offer valued the company at about A$421.3-million.
AWE said that the proposal had been subject to a number of conditions, including due diligence, legal documentation and internal approval conditions.
While the AWE board had met to consider the proposal, it was felt that the offer was opportunistic and did not reflect the fair underlying asset value of the company.
AWE shares were trading at a high of 74c each on Wednesday, from a low of 63c each.