Strike confirms Warrego merger proposal
Sydney-listed Strike Energy on November 10 confirmed it has submitted an all-scrip merger proposal to the board of fellow Australian energy company Warrego Energy.
Under the proposal, Warrego shareholders would receive 0.775 new Strike shares for each Warrego share held, in addition to the net proceeds from the sale of Warrego’s Spanish assets.
If the deal goes through, Warrego shareholders would own approximately 30.5% of the combined entity. Warrego would have the right to appoint one board member to the board of the combined group.
Warrego in a separate statement said the proposal is at a sufficient level to merit further review and it intends to grant due diligence access to Strike. Warrego is also undertaking due diligence on Strike in order to determine whether to recommend a transaction to its shareholders.
Strike and Warrego are partners in EP469 in Perth basin. Strike is also Warrego’s largest independent shareholder.