11/08/2008 - 09:19

ARC Energy, AWE merger complete

11/08/2008 - 09:19

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Shares in West Perth-based ARC Energy Ltd will be suspended from trading at the close of business today after the Federal Court approved its merger with Australian Worldwide Exploration Ltd.

Shares in West Perth-based ARC Energy Ltd will be suspended from trading at the close of business today after the Federal Court approved its merger with Australian Worldwide Exploration Ltd.

The court approval was the final step in the process merger between the two companies after an official and unanimous proposal was launched in April this year.

For each share they hold, ARC stakeholders will receive a combination of cash (19 cents), 0.3 AWE shares and shares in spin-off company Buru Energy Ltd with an implied value of $1.59 for each share.

Buru is expected to list on the local stock market on September 1, and will acquire all exploration assets in the Canning Basin area.

However the company will have to contend with legal proceedings from Victorian company Oil Basins Ltd which has gained approval from the Federal Court to extend its legal action from ARC to Buru.

Less than a fortnight ago, Oil Basins issued a court order to ARC concerning an alleged breach of obligations relating to a three-year confidentiality and non-circumvention agreement signed in November 2006.

The agreements relate to several licences, known as the Blina licences, in the Canning Basin.

ARC hit back today saying the claims were baseless and without merit.

The merger of ARC and AWE and the demerger of Buru Energy are expected to be implemented on August 25.

 

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