20/07/2009 - 10:33

Target Energy takeover fizzles out

20/07/2009 - 10:33

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The low key takeover battle for Target Energy has ended with suitors Advance Energy and Odin Energy allowing the "overvalued" offer to lapse.

Target Energy takeover fizzles out

The low key takeover battle for Target Energy has ended with suitors Advance Energy and Odin Energy allowing the "overvalued" offer to lapse.

Both suitors had mutually agreed not to extend the takeover offer period after consideration was given to Advance's $7.5 million funding agreement.

At the end of the offer period Advance and Odin, through joint venture company Blaze Asset, had acquired a 5.83 per cent stake which it intends to keep and use as leverage to obtain a board seat.

Target managing director Laurence Roe said the company was pleased to note the takeover attempt had expired.

"Over 94% of our shareholding steadfastly supported the vision and strategy of the Target board and management - an outcome that can only be seen as an overwhelming rejection of the opportunistic bid by Blaze Asset," he said.

"Now that the Blaze bid has expired, Target Energy has returned its full attention to growing the Company and realising its full potential.

"We are currently drilling at Snapper A3 and are in advanced discussions regarding the acquisition of a significant interest in a new oil and gas project in the U.S."

Blaze was offering one Advance share and one cent cash for each Target share.

 

The announcements are below:

 

BLAZE ASSET

Expiry of Blaze Asset Pty Ltd Off Market takeover for Target Energy Limited

In accordance with ASX listing Rule 3.3 the company advises that the off market takeover of Target Energy Limited announced by Blaze Asset Pty Ltd on April 8th 2009, a company jointly owned by Advance Energy Limited and Odin Energy Limited, has expired.

The offer period was not extended as it was considered that the offer to Target Energy shareholders was overvalued.

This decision was a mutual agreement reached by Advance Energy and Odin Energy, as joint shareholders of Blaze Asset, when consideration was given to the recently announced $7.5 million funding agreement secured by Advance Energy, and the growth and development opportunities that currently exist for both companies.

Blaze Asset will continue to monitor closely the investment in Target Energy to ensure maximum value is realized, and may consider a further takeover offer at a later stage.

At the expiry date of the offer today, Blaze Asset has received acceptances for 5.83% of Target Energy shares and will continue to hold shares as a portfolio investment. As the largest single shareholder of Target Energy, Blaze Asset will request a board seat to ensure the interests of its shareholders.

Today Advance Energy and Odin Energy paid the consideration in accordance with the Blaze Asset Pty Ltd offer to Target Shareholders who accepted as of the 26th June. Target Energy shareholders who accepted the offer post the 26th June will be paid their consideration the earlier of 1 month from the date of their acceptance and 21 days after the offer period (Fri 7th August).

 

TARGET ENERGY

Target Energy Limited ("Target") (ASX Code: TEX) is pleased to note the hostile and unsolicited takeover attempt by Blaze Asset Pty Ltd has now expired.

Target Energy Managing Director Laurence Roe said the continued strong support of the Company's shareholders during the takeover attempt meant the Blaze offer was always doomed to fail.

"Over 94% of our shareholding steadfastly supported the vision and strategy of the Target board and management - an outcome that can only be seen as an overwhelming rejection of the opportunistic bid by Blaze Asset.

"Independent experts have confirmed the true underlying value of Target's assets and with the uncertainty created by the Blaze offer now removed, we hope the markets will now recognise the strong upside we offer to investors seeking exposure to oil and gas exploration and production.

"Now that the Blaze bid has expired, Target Energy has returned its full attention to growing the Company and realising its full potential. We are currently drilling at Snapper A3 and are in advanced discussions regarding the acquisition of a significant interest in a new oil and gas project in the U.S."

The directors of Target Energy would like to extend their thanks to all shareholders for their continued support for the Company and for the many supportive phone calls and emails we have received over the past months.


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