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Another predator circles AWE

Trevor Chappell  |  29 Jan 2018Text size  Decrease  Increase  |  
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MELBOURNE - [AAP] Oil and gas explorer and producer AWE Ltd (ASX: AWE) has received a third takeover proposal, this time from Mitsui and Co, which has pushed AWE shares up by nearly 16 per cent.

Mitsui has made a non-binding and conditional proposal for all of AWE's shares, at 95 cents each, which values AWE at about $594 million.

Shares in AWE were 13.5 cents, or 15.88 per cent, higher at 98.5 cents, at 1159 AEDT.

In December, AWE recommended that shareholders accept a proposal from Mineral Resources to acquire AWE in a cash-and-shares deal that valued AWE shares at around 83 cents per share.

Earlier, China Energy Reserve and Chemical Group (CERCG) launched a takeover bid for AWE at 73 cents per share.

AWE has advised shareholders to take no action on the CERCG offer.

AWE said on Monday that the Mitsui proposal is conditional upon AWE terminating a scheme implementation deed with Mineral Resources by February 2.

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The Mitsui proposal requires a unanimous recommendation of acceptance from AWE directors.

"The AWE board will evaluate the Mitsui proposal and provide shareholders with a recommendation in due course," AWE said in a statement on Monday.

"The AWE board advises shareholders to take no action in relation to the Mitsui proposal or the CERCG offer until they receive further advice from the AWE board."

AWE's most valuable asset is the Waitsia gas field in the Perth basin.

Sydney-based AWE says the field is the largest onshore gas discovery in Australia for 40 years and has the capability to supply about 10 per cent of Western Australia's domestic market needs.

AWE also has interests in the BassGas and Casino projects off Victoria and 50 per cent of the Santos-run Ande Ande Lumut oilfield in Indonesia.

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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