Drillsearch Raises Stake in Takeover Target Ambassador Oil & Gas to 60.13%
Australia's Drillsearch Energy Limited reported Wednesday that following acceptances received this week, it has increased its relevant interest in Ambassador Oil & Gas Limited to greater than 60 percent. Ambassador’s Directors have also accepted the Drillsearch Offer in respect of their own shares.
Drillsearch's Offer has been automatically extended under the Corporations Act to 7pm, Monday Sept. 8 as a result of Drillsearch acquiring a relevant interest in more than 50 percent of Ambassador.
Given Drillsearch now has a controlling interest in Ambassador, Drillsearch has nominated directors to the Ambassador Board commensurate with its shareholding.
We encourage Ambassador shareholders to ACCEPT the Drillsearch Offer NOW because:
- Ambassador Directors have accepted the Drillsearch Offer for their own shares
- The Drillsearch Offer is the highest offer available* and represents an attractive premium to Ambassador’s recent historical share price
- 70.9 percent to Ambassador’s closing share price of $0.1813 (AUD 0.1950) per share on May 23, the trading day prior to Ambassador entering into a trading halt pending the announcement of the Drillsearch Offer
- Drillsearch now has a controlling interest in Ambassador with a relevant interest of 60.13 percent and has nominated Directors to the Ambassador Board
- Ambassador Shareholders that do not accept the Drillsearch Offer will be minority shareholders in Ambassador. There are risks associated with being a minority shareholder, including Ambassador potentially being delisted from ASX. Drillsearch is not obliged to make a further takeover offer
- If Drillsearch acquires 80 percent of Ambassador you may qualify for capital gains tax rollover relief^
- The Drillsearch Offer is currently due to close on 7pm Monday, Sept. 8 and may not be extended
- After the Drillsearch Offer closes the Ambassador share price is likely to fall. The liquidity of Ambassador shares is also likely to fall after the Drillsearch Offer closes potentially impacting your ability to sell your shares on-market
- The Drillsearch Offer provides Ambassador shareholders with cash and an opportunity to receive shares in Drillsearch, an Australian ASX 200 listed growth company focused on the Cooper Basin. Drillsearch has today reported a record year of production, revenue and profit
- Drillsearch intends to proceed to compulsory acquisition if it acquires 90 percent of Ambassador. This means you will be forced to sell your Ambassador shares but may not receive your consideration for a number of months. If you accept the Drillsearch Offer now you will receive your cash and Drillsearch shares within 10 Business Days
Please refer to Drillsearch's Bidder's Statement and Supplementary Bidder's Statements for the full terms of Drillsearch's Offer. If Ambassador Shareholders have any questions in relation to the Drillsearch Offer they should contact their financial adviser or contact the Drillsearch Offer Information Line on 1300 365 790 (for calls made within Australia) or +61 1300 365 790 (for international callers) between 8.30am and 5.30pm (Sydney time) Monday to Friday.
*Based on the Drillsearch share price of $1.42368 (AUD 1.53) on Aug. 26 and the Magnum Hunter share price of $6.34608 (AUD 6.82) on Aug. 26
^Please refer to section 9.4 of Drillsearch's Bidder's Statement for further information
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