25/01/2018 - 15:36

Chinese bid for AWE unchanged

25/01/2018 - 15:36

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AWE has urged shareholders to take no action on a takeover offer from the state-run energy giant China Energy Reserve and Chemical Group, which remains unchanged from its initial bid of 73 cents per share, after it lodged its bidder's statement.

Chinese bid for AWE unchanged
AWE has a 50 per cent stake in the Waitsia project in the Perth Basin.

AWE has urged shareholders to take no action on a takeover offer from the state-run energy giant China Energy Reserve and Chemical Group, which remains unchanged from its initial bid of 73 cents per share, after it lodged its bidder's statement.

CERCG Australia first flagged its interest in AWE on December 8, making an all-cash 73 cents per share bid, and today the company issued its statement with the offer unchanged.

Before Christmas, AWE instead recommended shareholders accept a rival proposal from Mineral Resources that offered 83 cents a share in a cash and scrip offer, well above the 73 cents-per-share bid by CERCG.

The bidding war targeting AWE's main growth asset, the Waitsia gas field in the Perth Basin, which the company has touted as the largest onshore gas discovery in Australia in 40 years and capable of supplying around 10 per cent of Western Australia's domestic market needs.

AWE also has interests in the producing BassGas and Casino projects, off Victoria's coast, and a 50 per cent stake in the Santos-run Ande Ande Lumut oilfield in Indonesia.

CERCG has directed attention to the all-cash nature of its bid, saying it offers more certainty than the cash-and-scrip offer from Mineral Resources.

AWE said its board would evaluate the CERCG offer, which opens on February 8, but advised shareholders to take no action.

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