Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Strike Energy on Wednesday abandoned its takeover plans for fellow-listed Warrego Energy, and has instead accepted the takeover offer made by Hancock Energy for its shareholding in that company.
Hancock’s interest in Warrego currently stands at 52.17%, with the company recently increasing its takeover offer for Warrego from 28c a share to 36c a share, after hitting the 40% minimum acceptance condition set.
In its tenth supplementary bidder’s statement, Strike, which had offered one of its own shares for every Warrego share held, said that while not acquiring control of Warrego, its offer had achieved a number of key milestones including seeing its share price appreciate by nearly 40% over the last six months.
Stopping short of congratulating itself, Strike also told shareholders that it was able to "extract significantly value" for its interest in Warrego, noting that it had procured an 80% increase in the counterparty offer price from the original 20c a share offered by ASX-listed Beach Energy at the start of the bidding war, to the closing offer price of 36c a share from Hancock.
Following the acceptance of Hancock’s increased offer, Strike would realise A$116-million in immediately available cash funding for its 25.99% interest held in Warrego.
Strike has, in an about-turn, welcomed Hancocks’ ownership of the Warreggo assets, saying that as a joint venture partner in the West Erregulla project, Hancock was a credentialed, well-funded and motivated counterparty to pursue development activity at the gas project.
ASX-listed Mineral Resources (MinRes) reportedly handed Hancock the win in the tussle for Warrego, accepting Hancock’s offer for its own 19.17% stake in Warrego, allowing Hancock to reach majority ownership.
MinRes had reportedly sold its shareholding in Warrego at a loss, having acquired the shares at prices between 34.8c a share and 39.2c a share in January this year, and at an average price of 37.8c a share, below the 36c a share offered by Hancock.