Australia's Strike Energy says its $310 mln bid for Warrego better than Hancock (updated)

Strike Energy

06/01/2023 24:26

(Adds details and background)
       Jan 6 (Reuters) - Australian gas producer Strike Energy
 STX.AX  said on Friday its takeover offer for Perth-based
Warrego Energy  WGO.AX  is at a premium to Hancock Energy's
sweetened offer, as the tussle for the oil and gas explorer
intensifies. 
    Strike's all-scrip bid of 37.5 Australian cents per share,
based on its closing share price on Jan. 5, values Warrego at
about A$459 million ($310.24 million). The offer also represents
a 4.2% premium to Hancock's sweetened 36 Australian
cents-per-share bid announced on Thursday, and values Warrego at
A$440 million.
        Warrego, which holds the West Erregulla Gas Fields in
Western Australia, has been at the center of a number of buyout
bids in the recent past, attracting offers from gas players such
as Beach Energy  BPT.AX  in the past.
    Hancock Energy said in a bidder's statement on Thursday its
offer extended to Warrego shareholders, who had earlier accepted
its lower offer of 28 Australian cents apiece, but were
conditional on the energy company achieving 40% shareholder
acceptance.
    Australian business magnate Gina Rinehart's Hancock Energy
currently holds more than 25% of Warrego Energy, while Strike
holds a 19.9% stake.
        Warrego and Hancock did not immediately respond to a
Reuetrs request for a comment.
    ($1 = 1.4795 Australian dollars)
 (Reporting by Riya Sharma in Bengaluru and Jaskiran Singh;
Editing by Devika Syamnath and Sherry Jacob-Phillips)
 ((Riya.Sharma@thomsonreuters.com;))