Kerry Stokes-backed Beach Energy (ASX:BPT) coveted thy neighbour’s proposed acquisition, and lobbed at Warrego its own superior bid.
Gina Rinehart, in turn, thought them all to be undervaluing Warrego, and so through her Hancock Prospecting oil and gas division, lobbed yet a third takeover at Warrego, at the highest offer price yet: 28c a share.
That pushed Beach out of the race, and it looked like Hancock Energy was going to get what it wanted.
Now, they who cast the first offer, Strike Energy, have come around to beat Hancock Energy’s offer by 5c.
Strike now finds itself offering 33.5c per Warrego share for the takeover; a lot higher than its original price.
Warrego shares are up, again, at over 11% in lunchtime trades.
Strike wants to offer Warrego shareholders one of its own shares for 100% of all Warrego shares. At 33.5c (based on Strike’s last closing price,) the deal effectively offers a 19% premium on Hancock Energy’s deal.
Strike has an existing relevant interest in 19.9% of Warrego’s shares to begin with, and has “received statements of intention to accept its proposed offer from Warrego shareholders holding a further 13% of the Warrego shares.”
Strike will provide a new takeover description document to Warrego, the market, and ASIC, before the end of the year.
“The Warrego Board will now also consider the proposed Strike Takeover Offer against the Hancock Takeover Offer,” the company said on Monday.
“Shareholders are advised to take no action in relation to either the Hancock Takeover Offer or the Strike Takeover Offer until they have considered the Target’s Statement.”
Warrego’s counsel are probably rolling their eyes this comes in right before Christmas. The company is yet to finish its target’s statement in response to Hancock Energy’s bid last week.
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