Adelaide Energy (ASX:ADE) Directors Unanimously Recommend Beach Energy Limited (ASX:BPT) Offer
Adelaide, Nov 18, 2011 AEST (ABN Newswire) - Beach Energy Limited (ASX:BPT) (PINK:BEPTF) announced on Monday, 7 November 2011, 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. On Thursday, 10 November 2011, Beach gained majority control of Adelaide Energy and has since increased its relevant interest in Adelaide Energy to 71.46 percent.
Yesterday, the Directors of Adelaide Energy unanimously recommended that Adelaide Energy shareholders accept the Offer from Beach, in the absence of a superior proposal. Adelaide Energy Directors also noted that they intend to accept the Offer in respect of the shares they own or control, in the absence of a superior proposal.
Remaining Adelaide Energy shareholders are encouraged to accept the Offer from Beach as:
- In the absence of a superior proposal, Adelaide Energy Directors:
Unanimously recommend that shareholders accept the Offer; and
Have stated their intention to accept the Offer in respect of the shares they own or control.
- The Offer price has been declared final and will not be increased under this Offer;
- It is unlikely an alternative bid will emerge as Beach has majority control;
- 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The Offer to Adelaide Energy shareholders will close on 22 December 2011, unless extended or withdrawn. Adelaide Energy shareholders can sell to Beach 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