Warrego Energy saga continues as Hancock Energy trumps Beach’s improved offer at $341m

Mon 05 Dec 22, 9:54am (AEST)
Pictured: an offshore oil and gas platform
Source: Unsplash

Key Points

  • Warrego’s share price jumps again as Hancock Energy outdoes Beach Energy’s latest revised offer
  • Hancock Energy willing to pay $341m for Warrego
  • Beach Energy has 5 days to match Hancock Energy’s offer

Warrego Energy (ASX:WGO) has once again told its shareholders to take no action towards the latest takeover offer from the two majors attempting to persuade it. 

Warrego is currently in the crosshairs of Beach Energy (ASX:BPT) and Gina Rinehart’s Hancock Energy for a takeover bid. Strike Energy (ASX:STX) had earlier lobbed its own proposal at Warrego, but appears to have now dropped out of the race. 

Worth keeping in mind is that Beach Energy is backed by WA media mogul Kerry Stokes, and Hancock Energy has Rinehart. 

What has happened since last week?

Last Wednesday, Beach Energy had offered Warrego shareholders 20c each for a total takeover value of $244.6m. 

On Thursday, Hancock Energy entered the ring with an offer of 23c for Warrego shareholders, bringing the takeover deal to $281.3m. 

Only a day later, last Friday (Dec 2), Beach upped the ante with a takeover offer of 25c each; outdoing Hancock Energy. That deal became worth $305m. 

Hancock Energy has now stepped in again to offer 28c: a deal worth $341m. 

Warrego’s market cap is $345.5m as at 9:45AM EST.

What happens now? 

Apart from Warrego shareholders all refreshing the news, it’s now up to Beach Energy to decide what it wants to do in light of an escalating bidding war from Hancock. 

Warrego’s share price is also up 8% In the first hour of trade to 28.3c. 

Warrego has asked Beach to match Hancock’s deal with a better offer, or, accept defeat. Hancock Energy is now basically paying the same price as Warrego’s market cap. 

Beach Energy, for context, has a market cap of $4.1bn. 

“Until Beach has had an opportunity to match the offer, Warrego maintains [its] existing recommendation in favour of the Beach proposal,” Warrego’s directors wrote today. 

Warrego's charts make obvious the impact of recent developments regarding its acquisition
Warrego's charts make obvious the impact of recent developments regarding its acquisition


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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