ARC Energy in talks with AWE about potential takeover

West Perth-based ARC Energy Ltd says it is in exclusive talks with Australian Worldwide Exploration Ltd about a potential takeover bid by AWE.

The annoucement is pasted below:

ARC Energy Limited refers to press speculation regarding a potential bid by Australian Worldwide Exploration Limited for ARC.

ARC confirms it is in exclusive discussions with AWE that may lead to a transaction being announced.

The potential transaction remains subject to a number of conditions, including agreement on consideration, completion of due diligence by both ARC and AWE and a number of other matters.

ARC has not been provided with an offer in a form capable of acceptance or suitable to be put to shareholders.

Discussions between ARC and AWE are ongoing and until there is greater certainty surrounding the terms of any offer it would be inappropriate for ARC to comment further.

In making this announcement, ARC cautions that there is no assurance that these discussions will result in any specific transaction. ARC will continue to update the market as required.