Beach inks binding agreement with Warrego
Sydney-listed Beach Energy has entered into a scheme implementation deed to acquire all the issued shares in Warrego for A$0.20 ($0.13)/per share, the company said on November 14. Beach will also receive net proceeds from the sale of Warrego’s Spanish assets.
“The proposed acquisition is strategically compelling and provides a unique opportunity to complement Beach’s growth strategy in the Perth basin,” Beach said. “It adds 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 National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business.
Beach on November 11 announced that it had submitted an indicative offer to acquire all the shares in Warrego. The offer was subject to Beach completing confirmatory due diligence and negotiation of a binding implementation agreement with Warrego. These conditions have now been completed, it said.
Warrego in a separate statement said that it has recommended that its shareholders vote in favour of the scheme, "in the absence of a superior proposal".
Commenting on the proposed acquisition, Warrego CEO Dennis Donald said: “This transaction provides an attractive outcome for our shareholders, with the certainty of cash proceeds. The premium offered to our share price recognises the strong underlying value of our assets as well as providing the ability to realise further upside from the future potential sale of Warrego’s assets in Spain."
Fellow Australian energy company Strike Energy had on November 10 submitted an all-scrip merger proposal to Warrego, valuing the company at 18.6 cents/share. Strike could still come up with an increased bid.
Strike and Warrego are partners in EP469 in the Perth basin. Strike is also Warrego’s largest independent shareholder.