Beach Energy Limited (ASX:BPT) Holds Relevant Interest of 55.31 Percent in Adelaide Energy Limited (ASX:ADE)
Adelaide, Nov 11, 2011 AEST (ABN Newswire) - Beach Energy Limited (ASX:BPT) (PINK:BEPTF) announced an unconditional, on-market, cash offer of 20 cents per share ("Offer") for all of the issued and outstanding ordinary shares of Adelaide Energy Limited (ASX:ADE) ("Adelaide Energy") it did not own. Beach has now secured its primary goal of majority control of Adelaide Energy and has now lifted its relevant interest in the company to 55.31%.
Beach Managing Director, Reg Nelson, said: "The takeover offer is a logical step for Beach that will remove our funding concerns relating to Adelaide Energy for the Nappamerri Trough unconventional gas work program."
"We are pleased that so many Adelaide Energy shareholders have taken the opportunity to accept the Offer and would encourage remaining shareholders to do likewise."
The remaining Adelaide Energy shareholders are encouraged to accept the Offer as:
- Beach now has majority control and, in Beach's view, it is unlikely an alternative bid will emerge as Beach now has a relevant interest of 55.31% 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;
- 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The Offer to Adelaide Energy shareholders will close on 22 December 2011, unless extended or withdrawn. While the Offer could be withdrawn with the consent of the Australian Securities and Investments Commission under certain circumstances, in Beach's view this is unlikely to happen.
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