Oil and gas company Beach Energy has submitted a counterproposal to acquire all the issued shares in Warrego Energy for $0.25 per share cash consideration, plus any net proceeds received from the sale of Warrego’s Spanish assets.
Beach Energy originally entered into a Scheme Implementation Deed (SID) with Warrego Energy under which Beach would acquire all the issued shares in Warrego for $0.20 cash per share, plus any net proceeds received from the sale of Warrego’s Spanish assets, by way of a members’ scheme of arrangement.
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On December 1, the Warrego Board announced that an off-market takeover offer received from Hancock Energy to acquire all of the fully paid ordinary shares in Warrego at an offer price of $0.23 per share.
“Beach’s counterproposal is a revision to the cash element of the offer price only and there are no other changes to the terms of Beach’s initial proposal contemplated by the SID,” the company said in a statement.
“The Beach Board considers that the counterproposal would provide a superior outcome to Warrego shareholders than the Hancock off-market takeover offer.”
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The proposed acquisition marks the first merger and acquisition activity for Beach since 2017, adding an additional development opportunity for new gas supply beyond Beach’s Waitsia Stage 2 LNG volumes and gas exploration drilling, which is soon to commence.
The ability to utilise Beach’s balance sheet and proven development expertise provides further support not only for the transaction but future gas developments in the Perth Basin.
