Strike accepts Hancock's revised offer for Warrego
ASX-listed Strike Energy has accepted Hancock Energy’s revised A$0.36 ($0.25)/share offer for Perth basin-focused Warrego Energy, thereby ending the attempt to acquire its West Erregulla joint venture partner.
“Strike announces its intention to accept into Hancock’s current offer for Warrego in respect of all Warrego shares held or controlled by the Strike Group,” it said on February 8. Strike owns 25.98% of Warrego shares. Hancock’s holding in Warrego will now rise to more than 78%.
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Hancock on February 6 said that its revised offer for Warrego had received the minimum required 40% approval from Warrego shareholders. All Warrego shareholders who accept, or have accepted, Hancock’s offer will receive $0.36/share, regardless of when they accepted the offer, Hancock said.
Hancock on January 5 announced a fresh offer of $0.36/share for Warrego, higher than its previous bid of A$0.28/share. The new offer was conditional on Hancock achieving 40% or more total acceptances under its offer.
Strike said that despite not acquiring control of Warrego, it has nonetheless achieved a number of key milestones including a 40% appreciation of its share price.
“Following acceptance of Hancock’s current offer, Strike will realise about A$116mn in immediately available cash funding at a material premium to Strike’s undisturbed share price and at an implied premium to Strike’s current share price,” it said.
“Strike’s joint venture partner will be controlled by a credentialed, well-funded and motivated counterparty to pursue development activity in respect of the West Erregulla gas project,” Strike added.
Hancok on February 9 urged all remaining Warrego shareholders to accept the revised offer, which remains open till February 24. “This is because once Hancock’s offer closes, it will review whether Warrego should be removed from the official list of ASX. Hancock will certainly proceed to remove Warrego from the official list of ASX if Hancock reaches a 90% position in Warrego,” it said.
Warrego, which owns assets in the Perth basin, has been at the center of an intense takeover battle over the past couple of months. In addition to Strike and Hancock, Beach Energy was also eyeing Warrego.