Hancock takes aim at Strike offer
PERTH (miningweekly.com) – Suitor Hancock Energy has cautioned shareholders of takeover target Warrego Energy on the increased takeover offer from ASX-listed Strike Energy.
Strike this week flagged an increased offering for Warrego, offering one of its own shares for every Warrego share held, implying an offer price of 33.5c a share on Strike’s last closing price.
This was up from its initial offer in November, where Strike offered 0.714 of its own shares for each Warrego share held along with an additional script consideration following the sale of Warrego’s Spanish assets within 12 months of obtaining control of Warrego.
Hancock Energy this week said that its own 28c a share offer for Warrego provided shareholders with certainty which the Strike proposal did not, adding that its own offer was substantially higher than the value of Strike’s script based on steady-state trading. Strike’s three-month volume weighted average share price prior to the offer was 24.7c a share.
Furthermore, Hancock noted that its own offer protected Warrego shareholders from exposure to future declines in Strike’s share price.
Hancock on Wednesday also revealed that the company had received unsolicited statements of intent from a number of Warrego shareholders holding a combined 15.84% interest in Warrego shares.
The supportive shareholders have notified both Warrego and Hancock that if Hancock declared its offer unconditional before the end of the second trading day after the shareholder statements were released to the ASX, each of the supportive shareholders would accept Hancock’s offer.
The company is now considering its position in light of this development.
Warrego has meanwhile been granted an extension to dispatch its target statement. The company now had until January 5 to submit its target statement to the Australian Securities and Investment Commission, and has urged shareholders not to take any action until they have considered the target statement.
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