Strike Energy Limited (ASX: STX) is a South Australian based oil and gas company engaged in the exploration of oil and gas through its assets located at the Cooper Basin in South Australia and the Perth Basin in Western Australia.
Today, the company officially announced that its wholly-owned subsidiary Strike West Holdings Pty Ltd. offer to takeover UIL Energy Limited (ASX: UIL) had been closed at 19:00 (Sydney time) on Friday, 14 December 2018. It has received an acceptance of 92.01%of the ordinary shares and 71.15% of convertible shares preference shares in UIL. Also, it has commenced the compulsory acquisition process of the remaining shares.
UIL Energy Limited (ASX: UIL) is a Western Australian listed company engaged in similar line of business of extracting oil and gas across the Perth region.
On 22 October 2018, STX entered into a binding Takeover Implementation Deed (TID) with UIL Energy Limited (ASX: UIL) with an off-market take-over offer of providing 0.485 ordinary shares of STX for every share of UIL. It indicated an offer price of 7.03 cents for each UIL share with a market capitalization of $16.1 million, based on the closing price on 19 October 2018. The offer indicated a premium of 43.4% to UIL 30-day VWAP of 4.6 cents. Both the parties intend to enter a private treaty to cancel the UIL’s options in exchange of cash or STX options. Further, it offered 0.485 STX Milestone options to each preference shareholder of UIL.
It gives an opportunity to the combined entity to structure a new domestic gas business with significant holdings in the Cooper and Perth region.
The company aimed towards raising funds of at least $13 million for the same by way of a placement of newly paid ordinary shares of 9,124,426 fully paid ordinary shares at 11.5 cents per share to international and local institutional and professional investors. The Share Purchase Plan was involved in raising $5 million funds but was able to raise $1 million only by its close on 30 November 2018.
By 28 November 2018, the company got total acceptance from almost 56% of the shareholders. By 7 December 2018, it got an acceptance from 73.78 ordinary shareholders and 52.41% preference shareholders.
Three days ago, STX announced that it had received an acceptance of 92.01% ordinary shareholders and it will be compulsorily acquiring the remaining shares. STX will issue the shares to those who will accept the offer on or before 4 January 2019. By 25 January 2019, it is expected that the compulsory acquisition of remaining shares will get completed. STX will be dispatching the compulsory buy-out offer by 14 January 2019. STX also encouraged the UIL shareholders to accept the offer sooner and get the entitlement to the consideration before they are compulsorily acquired.
Over the past one year, the STX’s share price has gone up drastically as supported by YTD of around 45%, but it has dipped by 28% during the past three months. Even post the announcement today, the price is down by around 3.3%, currently trading at around 8.7 cents. Today, UIL is trading at 4.2 cents.
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