Sydney Morning Herald: Armour Energy Switches Support to Offer from US Shale Pioneer
While multibillion-dollar takeover offers for large-cap energy players dominate the headlines, at the smaller end of the sector shale gas target Armour Energy is in the thick of M&A action, having switched support to a deal with a US company led by shale gas pioneer Aubrey McClendon and now rejecting a Chinese-backed bid.
Armour, which earlier this month had shifted its recommendation to back a $61 million full takeover offer from China's Landbridge at 20¢ a share, is now urging shareholders to instead vote in favour of a transaction with American Energy Partners (AEP), including a partial takeover at 25¢ a share.
The tussle for control of Armour's high-potential acreage kicked off in August when Landbridge's subsidiary WestSide Corporation made a cash off of 12¢ a share for Armour, almost double the 6.8¢ the junior's shares were trading at before the bid.
On Tuesday morning Armour shares, originally issued at 50¢ in the April 2012 spin-off from Brisbane-based DGR Global, were 2.7 per cent lower at 18¢. MORE