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    Beach Energy quits Warrego takeover race

Summary

The company said it plans to focus on its existing assets in the Perth basin and accelerate commercialisation of its acreage to deliver more gas for Western Australia.

by: Shardul Sharma

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Complimentary, Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, Mergers & Acquisitions, News By Country, Australia

Beach Energy quits Warrego takeover race

Beach Energy on December 9 said it does not intend to match the revised Hancock takeover offer for Warrego Energy.

The company said it plans to focus on its existing assets in the Perth basin and accelerate commercialisation of its acreage to deliver more gas for Western Australia.

“The multiple party bidding process for Warrego has reinforced our view of the value of our dominant acreage position in the Perth basin and encourages us to expand our current active exploration drilling program in one of the most exciting gas plays in Australia,” Beach CEO Morne Engelbrecht said.

Warrego in a separate statement said that it has now withdrawn its previous recommendation in favour of the revised Beach scheme proposal, and unanimously recommends that its shareholders accept the Hancock offer, in the absence of a superior proposal.

Hancock on December 5 increased the bid for ASX-listed Warrego, offering A$0.28 ($0.19)/share against its earlier offer of A$0.23/share made on November 30. The Hancock offer was higher than Beach’s bid of A$0.25/share. Beach had five business days to match the revised Hancock offer.

Meanwhile, Strike Energy, which was the first to bid for Warrego in early November with an offer of A$0.186/share, on December 7 said it is increasing its stake in Warrego to about 19.9%. Strike and Warrego are partners in EP469 in the Perth basin. 

Warrego said that the increase in Strike's percentage ownership does not impact the availability of the revised Hancock offer, which is not subject to any minimum acceptance condition.