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AWE calls for MinRes to match superior bid

Petrina Berry  |  31 Jan 2018Text size  Decrease  Increase  |  
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BRISBANE - [AAP] Oil and gas producer and explorer AWE (ASX: AWE) has given suitor Mineral Resources (ASX: MIN) three business days to match a superior proposal lobbed by Japanese firm Mitsui & Co.

AWE has so far fielded three takeover offers: first from China Energy Reserve and Chemical Group, then a bid by Mineral Resources, which it was endorsing up until Mitsui's recent proposal.

The company has decided that Mitsui's 95 cents a share all-cash offer, which values AWE at $602 million, is superior to MinRes's 83 cents-a-share cash and scrip bid.

AWE said it has reached an in-principle agreement with Mitsui and late on Tuesday issued a notice to MinRes asking it to match the rival bid by Friday.

"If MinRes does not match the Mitsui proposal within that period, AWE intends to enter into the Mitsui bid implementation deed and to change its recommendation to a recommendation that AWE shareholders accept the Mitsui takeover bid, in the absence of a superior proposal," a statement by AWE to the ASX said on Wednesday.

The company also released its December production report on Wednesday which showed production was flat but revenue was higher.

The group's December quarter production was consistent with the prior quarter at 0.6 million barrels of oil equivalent (MMboE).

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However, sales revenue rose 13 per cent to $21.8 million largely due to an increased volume of condensate and improved LPG prices and the company said conditions in Australian domestic gas markets remain strong.

Shares in AWE were down 0.8 per cent, or 0.75 cents, to 96.75 cents at 1119 AEDT.

 

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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.

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