Hancock Energy raises offer for Warrego
Australian billionaire Gina Rinehart’s Hancock Energy has increased the bid for ASX-listed Warrego Energy, offering A$0.28 ($0.19)/share against its earlier offer of A$0.23/share made on November 30, Warrego said on December 5. The Hancock offer is also higher than Beach Energy’s bid of A$0.25/share.
“The Warrego board has assessed the revised Hancock takeover offer and has determined that it is a superior proposal compared to the revised scheme proposal from Beach Energy,” it said. The offer values Warrego at A$341mn.
Warrego said it has now issued a notice under the matching rights regime in the Beach scheme implementation deed, which gives Beach five business days to match the revised Hancock offer.
“Until Beach has had an opportunity to match the revised Hancock takeover offer, the Warrego directors maintain their existing recommendation in favour of the Beach scheme proposal,” the company said.
Warrego has asked its shareholders to take no action in relation to the revised Hancock offer until they receive further advice from the company board.
Strike Energy was the first to bid for Warrego in early November with an offer of A$0.186/share. It now seems Strike has dropped out of the race. Strike and Warrego are partners in EP469 in Perth basin. Strike is also Warrego’s largest independent shareholder.