Article courtesy of Australian Mining.
Strike Energy has bowed out in the long-fought takeover battle for Warrego Energy, leaving Hancock Energy in position to take over the Perth Basin-based company.
Since early January, Hancock and Strike Energy have been battling for control of Perth Basin-based Warrego, believing it would be a valuable source of inexpensive gas.
However, it seems that battle could all be coming to an end, with Strike announcing it has abandoned its plans to pursue Warrego.
The month-long battle has at times involved Mineral Resources (MinRes) and Beach Energy, but both have since bowed out, with MinRes selling its shares to Hancock on February 7.
According to the Australian Financial Review, Strike will walk away with $116 million. This is because the company still holds shares equalling 25.99 per cent voting power, including remaining a 50 per cent partner in the West Erregulla gas field.
But while Hancock’s win brings one gas battle to the end, this may not mark the end of the broader race for the gas assets of WA.
Norwest directors recommended its shareholders accept a $497 million offer from MinRes in late January.
“The Norwest board is satisfied that MinRes’ improved offer is now a good deal for shareholders, and in the absence of a superior offer, unanimously recommends shareholders should ACCEPT the revised offer before it closes,” Norwest chair Ernie Myers said at the time.
“We have worked with MinRes in the interest of our shareholders to achieve the valuation and terms reflected in its revised offer.”
The upped MinRes bid came on the back of Norwest rejecting an initial unsolicited bid of $403 million in October 2022.
With the war in Ukraine making the energy crisis ongoing, control of and access to gas assets have become all the more important, and the Hancock–Strike battle looks like it won’t be the last of its kind.
