AWE Limited subsidiary ARC Energy has announced it has achieved a 51.2 per cent ownership of Adelphi Energy, taking control of the company.
On Monday the board of Adelphi recommended that shareholders accept AEL's takeover offer.
In a statement today AEL said that it now controls Adelphi and that board transition arrangements will be pursued.
AEL urged shareholders in Adelphi to accept its offer of 42 cents per Adelphi share to avoid being a minority shareholder in a controlled company.
See full statement below:
Further to our announcement of 21 June 2010, ARC Energy Limited* ("AEL") is pleased to announce that it has achieved a 51.2% ownership of Adelphi Energy Limited ("Adelphi")
AEL's offer is compelling and AEL urges Adelphi shareholders to accept the offer for the following reasons:
1. AEL's 42 cents per Adelphi Share Offer is fully priced and final;
2. Adelphi's Directors have unanimously recommended that, shareholders who are concerned about being minority shareholders in Adelphi controlled by AEL, should accept the AEL offer;
3. AEL now controls Adelphi and Board transition arrangements will be pursued;
4. Adelphi directors have unanimously indicated that they will be accepting the AEL offer for their shares and options;
5. It is highly unlikely an alternative bid can emerge as AEL owns over 50% of Adelphi; and
6. If you do not accept AEL's compelling offer you will be a minority shareholder in a controlled company, with the following significant future risks:
* Lower trading liquidity once the offer lapses;
* Likelihood of a lower trading price once the offer lapses; and
* Potential for dilution from any future capital requirements by Adelphi.
The AEL Offer is scheduled to close on Friday 9 July 2010. Adelphi shareholders can immediately accept the AEL Offer by selling their Adelphi Shares on market to Macquarie Securities, acting on behalf of AEL.
