Talon board continues to back Strike takeover offer

The directors of Talon Energy have unanimously recommended that the company shareholders vote in favour of Strike Energy’s takeover proposal, the company said on August 28.

Sydney-listed Talon on August 14 entered into a binding scheme implementation deed with its joint venture partner Strike under which Strike will acquire all the issued shares in Talon. Strike is offering Talon shareholders 0.4828 new Strike shares for each Talon share held.

Talon said that since the implementation deed was announced, no party has engaged with Talon with regard to evaluating or providing a competing proposal.

"Each of the Talon directors has committed to vote in favour of the scheme in respect of the shares they control in the absence of a superior proposal and subject to the independent expert concluding, and continuing to conclude, that the Scheme is in the best interests of Talon shareholders," Talon said.

Strike, in a separate statement, said that it continues to believe the acquisition of Talon is "both strategically compelling and logical for the shareholders of both the companies."

"However, it is important to make clear that this transaction is not critical for the implementation of Strike’s go-forward strategy," Strike said.

Strike holds a 55% interest in the Walyering project in the Australian Perth basin and Talon owns the remaining 45%. Additionally, Talon has a 33% stake in the Gurvantes coalbed methane project in Mongolia.

"Should the scheme not be successfully implemented and the deed is terminated, Strike will resume its normal role as operator of L23/EP447," it said.