A major shareholder in Impress Energy, Victoria Petroleum, says Beach Energy's $75 million on-market takeover offer undervalues the oil and gas explorer.
Victorian Petroleum holds a 20 per cent stake in Impress.
Adelaide-based Beach announced the takeover offer for Impress on Monday after the two companies terminated a merger agreement.
Beach said that it had launched the offer because Victoria Petroleum had increased its holding in Impress to 20 per cent and indicated its intention to vote against the merger proposal.
Under the terminated agreement Beach offered 8.25 cents per Impress share.
The new offer is 8.5 cents per share for each Impress share Beach does not own.
Today, Victoria Petroleum managing director Ian Davis said the bid underlines the growing market appreciation of the value of the production and exploration assets in the Western Margin Oil Project in PEL 104 and PEL 111 in the Cooper Basin.
"As operator of these assets, we believe the Beach offer undervalues Impress and its assets and does not recognise the significant exploration and development upside that exists," he said.
"We are assessing our options, but have no current intention to sell into the Beach
takeover bid," Mr Davies said.
Beach has increased its stake in Impress to 40.88 per cent since announcing the takeover bid.
