Australia's Armour Energy receives takeover offer

Sydney-listed energy company Armour Energy made an announcement on August 16 regarding an indicative and non-binding expression of interest from China's Shunkang Holding Group pertaining to a potential acquisition. The expression of interest is confidential and conditional and is not yet ready for acceptance, according to Armour.

The proposed acquisition price, as outlined in the expression of interest, falls within the range of A$0.13 to A$0.15 in cash per share of Armour. This expression of interest is contingent upon several conditions, including approval from Shunkang's board, the completion of due diligence, and Armour refraining from publicly revealing the specifics of the expression of interest.

Additionally, Shunkang has communicated that any potential future transaction would be subject to undisclosed additional conditions, including obtaining necessary government and regulatory approvals. Armour has a portfolio of assets across Queensland, Northern Territory, Victoria and South Australia. 

The board of directors at Armour Energy has not reached a decision about whether to further pursue this expression of interest based on improved terms. The proposed price in the current expression of interest is notably lower than both recent capital raisings and the recent trading price of Armour's shares. After an initial review, the board assessed the proposal as insufficient.

According to Armour, Shunkang Group is a conglomerate headquartered in Shanxi, China, involved in a range of industries including real estate development, international trade, technical research, commercial operations, tourism, and hospitality. Established in 2002, Shunkang Group has offices in Australia and the US.