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- Warrego Energy (WGO) is considering a fresh takeover offer from Hancock Energy after the Gina Rinehart business announced its bid earlier this week
- Warrego over November fielded competing takeover offers from Beach Energy (BPT) and Strike Energy (STX), but the Hancock offer of 23 cents per WGO share trumps both
- WGO says it is now weighing up the Hancock bid to determine whether it constitutes a “superior proposal” to Beach’s offer under terms of a signed scheme implementation deed
- If Warrego determines the Hancock offer is superior, Beach will have five business days to match the bid
- Shares in Warrego Energy are trading steady at 25.5 cents at 12:53 pm AEDT. Beach shares are up 1.97 per cent to $1.82, and Strike shares are trading grey at 28.5 cents
Warrego Energy (WGO) on Thursday morning said it was considering a fresh takeover offer from Hancock Energy after the Gina Rinehart business announced its bid earlier this week.
The energy arm of Ms Rinehart’s Hancock Prospecting this week made a surprise appearance in the battle for control of Warrego after the gas junior fielded competing bids from Beach Energy (BPT) and Strike Energy (STX) over November.
Hancock Energy has offered to pay 23 cents per share for full control of Warrego, trumping Beach and Strike’s respective offers of 20 cents and 18.6 cents per WGO share.
Warrego today said while it continued to recommend the Beach proposal, it was weighing up the Hancock bid to determine whether it constituted a “superior proposal” to Beach’s offer under terms of the WGO/BPT scheme implementation deed announced on November 14.
If Warrego determines the Hancock offer is superior, Beach will have five business days to match the offer before the Warrego board can formally change its recommendation to shareholders to favour the Hancock offer over the Beach offer.
As such, Warrego at this stage continues to recommend Beach’s bid and has told shareholders to take no action relating to the Hancock offer until receiving further direction from the Warrego board.
Hancock’s offer comes with no minimum acceptance conditions, meaning the private energy business plans to buy shares in Warrego even if it does not garner enough support to secure control of the business.
Shares in Warrego Energy were trading steady at 25.5 cents at 12:53 pm AEDT. Beach shares were up 1.97 per cent to $1.82, and Strike shares were trading grey at 28.5 cents.
