Warrego chairman backs Strike offer
Australia’s Warrego Energy on December 30 said the response of its board to the takeover bid by billionaire Gina Rinehart’s Hancock Energy was no longer unanimous following a revised proposal from Strike Energy.
“After careful consideration by the Warrego board and its advisers, the Warrego board recommends, by majority resolution of the board, that shareholders accept the Hancock offer in the absence of a superior proposal,” Warrego said. “The recommendation is not unanimous.”
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Greg Columbus, Warrego chairman and a director on the company board, now recommends that Warrego shareholders reject the Hancock revised offer and accept the Strike offer.
Columbus said that by accepting the Strike offer, shareholders may participate in future potential upside associated with the development of Warrego's existing assets and integration with Strike's assets.
Three other directors on the Warrego board - Michael Atkins, Mark Routh and Dennis Donald - recommend that shareholders accept the Hancock offer. Warrego's board had previously unanimously recommended Hancock's offer.
Strike on December 19 put in a bid of A$0.335 ($0.23) per Warrego share which represents a 19.6% premium to Hancock’s latest proposal for the company. Strike currently has a 19.9% interest in Warrego.