Article by By Angela Macdonald-Smith courtesy of the Australian Financial Review.
Gina Rinehart’s Hancock Prospecting has emerged as a third bidder for takeover target Warrego Energy, with the West Australian gas developer already fielding bids from Strike Energy and Beach Energy.
Hancock Energy, the energy arm of the private group, is offering 23¢ a share in cash for shares in Warrego, higher than Beach’s proposed 20¢ a share and Strike’s 18.6¢ a share proposal.
Perth Basin partner Warrego Energy and Strike Energy have held on and off merger talks for years.
The offer does not have any minimum acceptance provisions, meaning Hancock will buy shares in Warrego even if it does not secure control. Warrego has already agreed to be acquired by Kerry Stokes-backed Beach in a proposed scheme of arrangement that values its equity at $246 million and is subject to “no talk” provisions.
Hancock Energy director Stuart Johnston described the offer as “attractive and compelling for Warrego shareholders, including in light of recent proposals they have received”.
A bidder’s statement has been lodged with the securities regulator and Mr Johnson encouraged Warrego shareholders “to accept the offer at their earliest opportunity”.
The move looks set to add a stake in the Perth Basin energy player to Hancock’s growing portfolio of gas assets, which includes a minority stake in Queensland-based domestic gas producer Senex Energy, alongside majority owner Posco of South Korea.
Warrego and Strike are equal partners in the proposed West Erregulla gas development about 230 kilometres north-east of Perth.
Billionaire Chris Ellison’s Mineral Resources said it was keeping an eye on the consolidation opportunities in the region, and Santos and Mitsui have also been touted as interested parties.
