WHSP bids $70m for Exco Resources

Diversified investment house Washington H Soul Pattinson has launched a near-$70 million all-cash takeover bid for Perth-based exploration junior Exco Resources.

WHSP announced today it had offered Exco security holders 19 cents per share, valuing the target at approximately $69.8 million.

The investment house already owns just over 55 million Exco shares, or just under 20 per cent.

Exco Resources’ board of directors has advised shareholders to take no action until it has had ample opportunity to consider the offer.

“This is a straight forward cash offer,” WHSP chairman Rob Millner said. “The offer allows Exco shareholders to exit their investment at an attractive premium to recent and historical trading prices.”

At close of trade today, Exco stocks were up 8.3 per cent, to 19.5 cents.