Mitsui Joins Chase for Australia’s AWE
Japanese trading company Mitsui has thrown its hat into the ring for the takeover battle for Australian oil and gas producer AWE, the takeover target said January 29.
Mitsui, which is the third party to join the contest for AWE, made an unsolicited, non-bonding and conditional proposal to acquire 100% of the company’s shares for a cash consideration of A$0.95 ($0.77) per share, AWE said.
RBC Capital Markets analyst Ben Wilson said Mitsui’s bid tops the current leading cash/scrip offer from Australia’s Mineral Resources, as well as the trailing bid by China Energy Reserve and Chemical Group (CERCG).
AWE backed Mineral Resources offer, which had an implied value of A$0.83, on December 1 and the Mitsui proposal is subject to the termination by AWE of the MinRes scheme implementation deed by February 2. “The AWE Board will evaluate the Mitsui Proposal and provide shareholders with a recommendation in due course,” the company said.
CERCG lodged its bidder’s statement for its conditional off-market cash takeover bid for AWE at A$0.73 per share on January 25. “The CERCG Offer of [A]$0.73 per share has not been increased since CERCG Australia announced its intention to make the offer on 8 December 2017,” AWE noted at the time.
Speaking in relation to the move by Mitsui, Wilson said: “Mitsui is a familiar fixture on the Australian E&P scene on both coasts via its offshore oil, gas, and LNG interests on the West Coast (LNG via the Mitsubishi/Mitsui JV in the North West Shelf), its offshore Victoria gas assets (including an interest in the Casino project with AWE), and its Queensland CBM JV with Chinese company Landbridge in the Meridian field in the Bowen”.
“According to the terms of the scheme implementation deed, MinRes has three business days to counter with a revised offer that is at least no less favourable than the Mitsui bid in order to retain the AWE board recommendation,” he noted.
AWE’s priorities centre on the development of Stage 2 of the Waitsia gas project in Western Australia and securing new gas sales contracts for Casino and BassGas on the east coast, AWE says on its website.