Gas explorer Norwest Energy has accepted a revised offer from Mineral Resources, ending a bitter battle between the joint venture partners.
Under the revised offer, Mineral Resources offered one of its shares for every 1300 Norwest shares, valuing the smaller company’s stock at about 7.41¢ a share, equating to $497 million. Norwest shares had been trading at about 4.7¢ in the preceding three months.
Mineral Resources acquired a 19.9 per cent stake in Norwest before launching a full takeover offer in December. Norwest, however, rejected Mineral Resources initial offer of one share for every 1367 Norwest shares, which it described as not appropriately valuing its Perth Basin assets, and alleged the bid had been “opportunistically timed”.
Returning serve, Mineral Resources CEO Chris Ellison took out a full-page advertisement in The Australian Financial Review to urge Norwest to accept his offer, which he said would give them “exceptional shareholder returns”.
Striking a deal now brings to an end the latest chapter in an increasingly bitter battle for energy resources in Western Australia.