Mitsui Snatches Takeover Backing for Australia's AWE
Japanese trading company Mitsui has snatched Australian gas producer AWE’s backing for a takeover from Mineral Resources, according to an announcement from AWE to the Australian Stock Exchange February 5.
Mitsui joined the chase for AWE on January 29 with a proposal to acquire 100% of the company’s shares for a cash consideration of A$0.95 ($0.77) per share. AWE had previously recommended a MinRes bid to its shareholders which had an implied value of A$0.83 per share and once Mitsui made its superior offer, it gave MinRes the opportunity to match the proposal.
“AWE advises that MinRes did not match the proposal from Mitsui within the time period specified in the MinRes SID. As the AWE Board has determined that the Mitsui Takeover Bid is superior to the MinRes Scheme proposal, the AWE board has now withdrawn its recommendation of the MinRes Scheme, and unanimously recommends that AWE shareholders accept the Mitsui Takeover Bid at [A]$0.95 per share, in the absence of a superior proposal and subject to the independent expert concluding that the Mitsui offer price is fair and reasonable,” AWE said.
The hunt for AWE began on November 30 when China Energy Reserve and Chemical Group (CERCG) made a bid for the company at A$0.71 per share, which it later increased to A$0.73 per share. The day prior to CERCG’s initial bid, AWE’s closing price was A$0.545 per share.
The Mitsui offer price of A$0.95 per share values AWE at a market capitalisation of A$602 million and represents a premium of 74.3% to AWE’s closing price on November 29.
AWE has gained attention due to its development of the Waitsia gas project in Western Australia. It’s also focused on securing new gas sales contracts for Casino and BassGas on the country’s east coast.
“It is very satisfying to see the considerable value that we have created from our portfolio, particularly with the Waitsia Gas Project, recognised by such a high quality and respected organisation as Mitsui,” AWE’s CEO and managing director David Biggs said.
It’s expected that Mitsui will lodge its bidder’s statement with the ASX on February 9 and that the offer will be despatched to AWE shareholders on or around February 12.