Mitsui Takes Majority Stake in Oz AWE

Japanese trading company Mitsui said April 4 it has taken a controlling interest in Australian gas producer AWE and declared its takeover offer as unconditional.

“As Mitsui’s relevant interest in AWE has increased to more than 50%, the offer has been automatically extended by 14 days under the Corporations Act, such that it is now scheduled to close at 7pm (Sydney time) on 18 April 2018 (unless extended),” the Japanese company said.

Mitsui’s relevant interest in AWE reached 51.89% on April 4 and it strongly encouraged all AWE shareholders to accept the offer without delay. AWE recommended Mitsui's offer to its shareholders last week.

Mitsui’s cash takeover offer for AWE’s shares is for A$0.95 per share and the company fended off rival bids by China Energy Reserve and Chemical Group (CERCG) and Australia’s Mineral Resources. Mitsui's offer price values AWE's market capitalisation at A$602mn (US$463mn) and represents a premium of 74.3% to AWE’s closing price on November 29, a day before the hunt began with CERCG’s initial offer.

AWE has gained attention due to its development of the Waitsia gas project in Western Australia. It is also focused on securing new gas sales contracts for Casino and BassGas on the country’s east coast.