Strike offer ‘best and final’

John Poynton-chaired Strike Energy says it will not improve its scrip offer currently before undecided Warrego Energy investors, with the course of the takeover attempt still hanging in the balance.

Strike issued a sixth bidder’s statement to the market this morning, advising its one-for-one scrip bid for Warrego was ‘best and final’ and that it was expecting further acceptances to the tune of 1.57 per cent.

It’s the latest development in what has become an openly antagonistic bidding war between Strike and Hancock Prospecting subsidiary, Hancock Energy, which are fighting to take control of Warrego and its gas potential in Western Australia’s Perth Basin.

Gina Rinehart’s private company is offering 28 cents per share to Warrego shareholders and has agreed to lift its price to 36 cents per share if it acquires a 40 per cent stake. The bid is in direct competition to that of Strike Energy.

Both parties have accused the other of muddying the water in terms of board support and their recommendations to shareholders, as well as the validity of their reported acceptances from investors.

According to a target statement from Warrego Energy published in January, three of its four directors have recommended shareholders reject Strike’s offer.

But in some cases their endorsement has been subject to qualifications.

Warrego’s chief executive and managing director, Dennis Donald, who has an 11.43 per cent stake in the company, has accepted the offer from Hancock Energy.

Non-executive director Mark Routh has also indicated his intention to accept the offer from Hancock.  

Warrego non-executive director Michael Atkins, who owns no shares in the company, has recommended Warrego shareholders accept Hancock’s offer or sell on-market.

However, chairman Greg Columbus has accepted Strike’s offer in respect of all his shares, which represent 3.44 per cent of the company.

On Monday, Hancock gave undecided shareholders another 10 days to accept its offer after missing the deadline to hit 40 per cent acceptances, which the private company will need to fully take over Warrego.

Strike's bid does not have a minimum acceptance requirement. 

Latest ASX notices show Strike has a 24.91 per cent stake in Warrego, while Hancock Energy a 27.03 per cent stake.

Hancock is being advised by Corrs Chambers Westgarth while Strike is being advised by DLA Piper and Macquarie Capital.