Beach Energy Acquires Drillsearch in All Share Deal

Beach Energy Limited on Friday announced its merger with Drillsearch.

Beach has agreed to acquire all of the shares in Drillsearch that it does not already own. Drillsearch shareholders will receive 1.25 Beach shares for each Drillsearch share held.

“The merger will create a company of enhanced scale that is positioned for future growth, with combined FY2015 production of 12.1 MMboe and an expanded portfolio of oil, gas and infrastructure assets. The Boards of both Drillsearch and Beach believe this is a logical combination of two complementary, overlapping businesses, with the opportunity to generate significant value for shareholders of both companies,” Beach said in a statement.

Drillsearch shareholders will own approximately 30 percent of the total issued share capital of the combined group.

Beach believes that given the overlapping interests of the two companies, the transaction will realise synergies and cost savings of close to A$20 million per annum.

The deal, which needs to be approved by shareholders, is expected to close in February.