21/01/2009 - 22:00

Pure boost from Arrow’s $500m strike

21/01/2009 - 22:00

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WITH the takeover offer set to open shortly for Perth-based Pure Energy, managing director Steven Beardsall may be in for a nice cash bonus as he boosts his stake in the company.

Pure boost from Arrow’s $500m strike

WITH the takeover offer set to open shortly for Perth-based Pure Energy, managing director Steven Beardsall may be in for a nice cash bonus as he boosts his stake in the company.

During the past week, Mr Beardsall sold a parcel of Pure Energy shares worth $302,634 through an on-market transaction.

The share sale was not an acceptance of Brisbane-based Arrow Energy's offer, expected to open mid next month, but rather to fund the exercise of options, Mr Beardsall told WA Business News.

A day earlier, the market was notified that Mr Beardsall had exercised options into 1 million fully paid ordinary shares at a cost of $300,000, or at a heavily discounted 30 cents apiece, giving him more than 4.5 million shares, or 4.8 per cent of the company.

Pure Energy's share price has hovered around the $5 mark since Arrow proposed the $500 million acquisition late last month. Prior to that, Pure Energy's shares had traded between a range of 40 cents and $3 in 2008.

Should Mr Beardsall accept the offer, which he indicated was likely if no superior offer emerges, he will stand to pocket about $12.4 million from the cash component of the bid.

Pure Energy chairman Robert Day also exercised options into 805,000 shares at a cost of $241,500, as did director Terrence Primeau, who acquired 3 million shares at a cost of $900,000.

Arrow's takeover proposal comprises $2.70 cash for each Pure Energy share plus 1.2 Arrow shares for every share in the target.

The directors of Pure Energy have said they will accept the offer within two weeks of the offer opening.

MINDAX LTD

SINCE buying a 10 per cent stake in Mindax early last year, director Andrew Tsang has continued to increase his shareholding in the company, with a series of transactions boosting his interest to about 21 per cent.

Managing director Gregory Bromley said the Sydney-based Mr Tsang is able to increase his interest every six months by 3 per cent under creep provision rules.

He added that Mr Tsang, a property developer in Sydney, has made no indication of a possible takeover but rather the increase in shares was a vote of confidence in the company.

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