Strike Energy (ASX:STX) claims its deal is ‘best value’ in fight for Warrego (ASX:WGO)

• Strike Energy (STX) releases a second supplementary bidder’s statement claiming its takeover offer of Warrego Energy (WGO) is still ‘best value’ for WGO shareholders
• Strike’s offer exceeds that of Hancock Energy which yesterday was upped to 36 cents a share – conditional on it achieving 40 per cent or more of WGO’s shares
• Strike says it believes there will be continued interest in strategic, high-quality assets in the Perth Basin, including its own
• It argued Warrego shareholders would forgo further upside by accepting the Hancock offer
• Shares in Strike and Warrego were both trading at 38 cents at 11:56am AEDT

Strike Energy (STX) has released a second supplementary bidder’s statement in its quest to acquire all remaining shares in Warrego Energy (WGO), claiming its offer was still ‘best value’ for Warrego shareholders. Through its subsidiary Strike West Holdings Pty Ltd, Strike is attempting to acquire Warrego shares on a one Strike share for one Warrego share basis. Strike already owns 19.9 per cent of Warrego shares. Today both Strike and Warrego shares were trading at 38 cents (11.25am AEDT). Strike’s offer exceeds that of Hancock Energy which yesterday was upped to 36 cents a share – conditional on it achieving 40 per cent or more of WGO’s shares. “Warrego shareholders should note that Hancock has not yet actually increased its offer price,” the statement said. “If Warrego shareholders accept the Hancock offer now they will only receive payment of 28 cents per Warrego share, unless and until Hancock receives the acceptances of 40 per cent or more and increases its offer price, as it has proposed, before the expiration of its offer on 31 January 2023. “Strike continues to believe that Strike’s all scrip offer of one Strike share per Warrego share currently represents the best value for all Warrego Shareholders.” The statement said Strike’s scrip bid allowed Warrego investors to participate in ‘future potential upside’ and ‘retain exposure’ to the exciting and emerging Perth Basin. “There has been significant corporate interest for assets in the Perth Basin, evidenced by the numerous competing offers for Warrego,” the statement said. “The current macroeconomic environment has supported this growing enthusiasm due to elevated global energy prices, a short domestic WA gas position and a limited number of high-quality, near-term domestic gas projects following a period of meaningful underinvestment. “Strike believes there will be continued interest in strategic, high-quality assets in the Perth Basin, including those assets held by Strike.” The statement said under Hancock’s offer, ‘Warrego shareholders will forgo any ongoing upside that may be realised’. “In the event Strike ultimately receives a change of control proposal, you may receive a further change of control premium on your Strike shares.” Strike is calling for Warrego shareholders to accept its offer which is expected to open on January 11. Today Strike shares were trading higher at 38 cents, equating Strike’s offer to a 5.5 per cent value premium to Hancock’s 36-cent offer. Warrego shares were also trading at 38 cents at 11:36am AEDT.