PERTH (miningweekly.com) – Gina Rinehart’s Hancock Energy has taken more than a 50% interest in takeover target Warrego Energy, triggering a higher offer.
Hancock Energy initially offered 28c a share in cash for Warrego shares, but offered to increase this price to 36c a share if it achieved a minimum 40% acceptance of its offer, which is scheduled to close on February 24.
The company’s takeover offer is competing against a bid from Strike Energy, which is offering one of its own shares for every Warrego share held.
Hancock on Monday said that with its 40% increase condition now having been satisfied, all Warrego shareholders who accept the offer would receive 36c a share in cash, regardless of when the offer is accepted.
Hancock has become Warrego’s controlling shareholder, holding 50.54% of the company, with the company saying that the prospect of a new competitor emerging for Warrego was "negligible".
The company has now urged the remaining Warrego shareholders to accept the offer, saying they faced significantly reduced trading liquidity if they chose to held on to their Warrego shareholding, while also arguing that the share prices of both Strike and Warrego were expected to decline below the 36c-a-share mark once the Hancock offer closes.
Warrego nonexecutive chairperson Greg Columbus has, meanwhile, accepted Strike’s offer for his 42.1-million shares held in the takeover target.
At last count, Strike had a 24.91% interest in Warrego.
Edited by: Creamer Media Reporter
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