Everything you need to know about Warrego (ASX:WGO) takeover - Kalkine Media

December 28, 2022 11:46 AM AEDT | By Sonal Goyal
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  • Warrego share price has increased by 47.62% in the past one month.
  • Hancock has made its offer unconditional for all the Warrego shareholders.
  • Strike Energy may also make it offer unconditional.

ASX-listed gas explorer, Warrego Energy Limited (ASX:WGO) has been getting immense limelight amid the tussle between Strike Energy Limited (ASX:STX) and Hancock Energy to take over the firm.

Warrego shares were spotted trading flat at AU$0.31 per share today (28 December 2022).

Details of the takeover offer presented by Beach, Strike and Hancock

On 10 November 2022, Warrego received an indicative proposal to acquire all the shares of the company, which it currently does not own, through a scheme of arrangement. Under the proposal, the shareholders would get 0.775 new Strike shares.

On 11 November, Warrego received a takeover offer from Beach Energy Limited (ASX:BPT) for a cash consideration of AU$0.20 per share and net proceeds from the sale of Spanish assets of Warrego.

On 14 November, Warrego and Beach Energy entered into a scheme implementation deed.

On 30 November 2022, Hancock made an off-market takeover offer to acquire all shares for an all-cash consideration of AU$0.23 per share.

Following the Hancock offer, under the matching right regime in the scheme implementation deed, Warrego issued a notice to Beach Energy to match the Hancock offer by 8 December.

Beach Energy submitted a counter offer on 2 December 2022 of AU$0.25 per share along with net proceeds from the sale of Spanish assets.

The same day, Hancock updated its bid to AU$0.28 per Warrego share.

On 7 December, Strike Energy entered into the picture as it increased its ownership in Warrego by 19.9% by executing a share swap agreement at a 1:1 share exchange ratio. As reported, Strike would become the largest shareholder of Warrego after the completion of the share swaps.

Beach chose not to participate further in the bidding war and announced that it would not match the revised offer of Hancock (of AU$0.28 per share). 

On 19 December, Strike Energy shared its intent to make a takeover bid to buy all outstanding shares of Warrego for one strike share for one Warrego share. According to ASX announcement, the implied offer price here is 33.5 cents.

On 21 December, the market came to know that the supportive shareholders are seeking to realise cash value for their shares as soon as possible. Also, the supportive shareholders had informed both Warrego and Hancock that if the offer is declared unconditional by Hancock, then they would accept the offer (the offer is not subject to a superior offer).

In line with the previous announcement, Hancock declared its offer unconditional with immediate effect. With this, now the Warrego shareholders can realise cash value for their holdings by giving thumbs up to the offer without any delay. Those shareholders who will accept the offer will receive AU$0.28 per share within ten business days.

On this, Strike said that it might declare its proposal unconditional promptly.


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