Warrego Energy, caught between three bids, to take no action on Hancock Energy takeover offer
Warrego Energy wants to have more time to look at Hancock's offer; Beach might need to ratchet up
Source: iStock
Mentioned
KEY POINTS
- Warrego tells Gina Rinehart’s Hancock Energy it wants more information on proposed takeover offer
- Hancock Energy offering $281.3m for the company; outsizing competitors’ bids
- Warrego advises its shareholders to take no action; deed with Beach allows for Beach to respond to Warrego’s decision to choose superior offer
Warrego Energy (ASX:WGO), which has recently been in the spotlight following a takeover offer from Australian energy midweight Beach Energy (ASX:BPT), has today revealed it is assessing whether or not it now stands before a superior bid.
Earlier in November, Warrego received a similar offer from Strike Energy, and with a new offer now in the mix, Warrego currently stands before no less than three takeover offers.
The company’s shares have risen another 15% today in the first hour of trade.
What is going on?
News broke yesterday that privately held Hancock Energy Pty Ltd (yes, that Hancock,) had entered the room to lob an offer at Warrego.
For those playing at home, the move sees Gina Rinehart’s Hancock empire up against the Kerry Stokes backed Beach Energy.
At this time, Hancock Energy is offering Warrego shareholders 23c for every share held; 3c higher than Beach Energy’s bid of 20c each.
Strike Energy, meanwhile, offered 18.6c.
Dollars and sense
Hancock Energy may well be the best funded to proceed with the purchase, given that it (reports its own) cash of some $18bn.
Warrego is now ascertaining whether or not the Hancock Energy takeover offer satisfies the definition of a “superior offer” as included in the implementation deed handed to it by Beach.
Should Warrego decide Hancock’s offer to be superior, Beach will then have five days to offer an even better offer.
A look at Warrego's six month charts
