Beach Energy Limited (ASX:BPT) Increased Relevant Interest in Adelaide Energy (ASX:ADE) to 48.36%
Beach Managing Director, Reg Nelson, said: "Beach continues to be encouraged by ongoing support for the Offer. We believe that with a relevant interest in Adelaide Energy of 48.36%, we will soon have majority ownership. We encourage remaining Adelaide Energy shareholders to sell into the Offer and receive cash for their shares three days after accepting the Offer."
The remaining Adelaide Energy shareholders are encouraged to accept the Offer as:
- In Beach's view, it is unlikely an alternative bid will emerge as Beach now has a relevant interest of 48.36% in Adelaide Energy;
- The Offer represents a significant premium to the price that Adelaide Energy was trading at prior to Beach announcing its intention to acquire the company;
- Many Adelaide Energy shareholders, including the second largest shareholder (after Beach), have already accepted the Offer;
- The remaining shareholders are likely to have their shareholding diluted by the future capital requirements of Adelaide Energy; and
- The remaining shareholders who do not accept the Offer face potential share price risk and reduced liquidity once the Offer closes.
The Offer to Adelaide Energy shareholders will close on 22 December 2011, unless extended or withdrawn.
Until that time, the remaining Adelaide Energy shareholders have the opportunity to sell into the Offer and capture value for their shareholding.
Adelaide Energy shareholders can accept the Offer by instructing their broker to sell their shareholding to Beach through its broker for the Offer, Macquarie Equities Limited.
About Beach Energy Limited
Beach Energy Limited (ASX:BPT) is a long established oil and gas Exploration and Production Company, based in Adelaide, South Australia.
Beach Energy Limited
Adelaide Energy Limited