17/05/2010 - 10:04

AWE launches on-market offer for Adelphi

17/05/2010 - 10:04

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West Perth-based Adelphi Energy has urged its shareholders to take no action regarding an on-market takeover offer launched today by its major shareholder, oil and gas company AWE.

West Perth-based Adelphi Energy has urged its shareholders to take no action regarding an on-market takeover offer launched today by its major shareholder, oil and gas company AWE.

AWE today said it planned to acquire the Adelphi shares it does not already own through broker Macquarie Securities at an on-market price of 40 cents each.

Through subsidiary ARC Energy - a Perth company AWE acquired in 2008 - AWE holds a 33.8 per cent shareholding in Adelphi.

The takeover offer by AWE for Adelphi shares it does not own is valued at close to $45 million.

News of the takeover ignited Adelphi's share price, which surged 50 per cent, or 14 cents, to a high of 42c before easing to 41.5c at 11:41 AEST.

Adelphi is being advised by Hartleys.

The on-market offer opens today and is due to close on July 9.

In a presentation lodged with the Australian stock exchange, AWE said the takeover is a "sensible rationalisation of AWE's corporate portfolio" and fits in with its unconventional gas strategy.

Adelphi holds a 10 per cent, post farm-out, interest in the Sugarloaf shale gas project in Texas and an 8.5 per cent equity interest in exploration tenements in onshore Yemen.

Adelphi's Yemen holding fits in with AWE's existing Yemen interests; a 19.25 per cent interest in Block 74.

AWE said if it acquired a less than 50 per cent interest in Adelphi, then it would reconsider its position in the company.

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