Mineral Resources steers away from Warrego Energy buyout plan (updated)

Strike Energy

18/01/2023 10:10

(Adds background, details)
       Jan 18 (Reuters) - Australia's Mineral Resources Ltd
 MIN.AX  said on Wednesday that it will not make a takeover
offer for Perth-based Warrego Energy  WGO.AX , citing
over-inflation of gas asset prices in the Perth-basin.
    Warrego, which holds the West Erregulla gas fields in North
Perth Basin in Western Australia, has lately been at the center
of M&A attention, attracting offers from gas players such as
Beach Energy  BPT.AX , Strike Energy  STX.AX  and Gina
Rinehart-owned Hancock Energy.
        Mineral Resources also confirmed that it had acquired a
19.17% strategic stake in Warrego.
    Hancock, which has made a A$0.36 per share bid for Warrego,
said last week that it has received acceptances from Warrego
shareholders holding about 26.1% of the company's shares.
 urn:newsml:reuters.com:*:nFWN33W3D3
        Earlier this month, Hancock Energy had raised its offer
to A$0.36 a piece from A$0.28 per share of Warrego, valuing the
oil and gas explorer at A$440 million ($309.14 million), while
attaching a condition that the updated bid would be applicable
if it got 40% acceptance from Warrego shareholders.  urn:newsml:reuters.com:*:nFWN33Q1BG
($1 = 1.4233 Australian dollars)
 (Reporting by Jaskiran Singh in Bengaluru; Editing by Shailesh
Kuber)
 ((Jaskiran.Singh@thomsonreuters.com;))