Australia's Armour Energy Rejects Takeover Bid by Westside Corp.
Australia's Armour Energy Ltd. (Armour or the Company) provided Wednesday the market with an update on their consideration of the unsolicited, hostile and conditional takeover bid lodged by Westside Corporation Limited (a subsidiary of Landbridge Group Co Limited) (Westside) of $0.0845 (AUD 0.12) per Armour share (Offer).
Having reviewed the terms of the Offer, the Board of Armour unanimously recommends that shareholders REJECT the opportunistic and inadequate Westside Offer as it significantly undervalues the Company both in terms of its existing assets, and the potential value the company expects to deliver to its shareholders in the near future.
Executive Chairman Nicholas Mather said:
“The Offer does not reflect the current or potential value of Armour’s assets and comes at a time when the Company is in the process of decisively rebuilding its business and in the context of increasing demand for gas in Australia.”
Armour is also on the verge of undertaking two value enhancing transactions which the Board believes are key in unlocking the potential which exists in Armour’s asset base and Armour’s position in the Australian gas market. Specifically:
- The proposed transaction with American Energy Partners (announced to the market Aug. 20) provides a basis to progress and add significant value to Armour’s Northern Territory assets. The Company is progressing the definitive agreements for this transaction and will update the market separately on that process
- The agreement to acquire the Roma Shelf assets from Origin Energy (announced to the market on Sept. 2) provides a further basis for growth and future cash‐flow
Shareholders are urged to support these important initiatives.
The Board looks forward to providing further updates on these two transactions shortly.
Armour is also in the process of preparing its Target’s Statement in response to the Offer and will provide additional details to shareholders as to the Board’s recommendations, and the value enhancing transactions referred to above, in that document.
In the meantime, the Board unanimously recommends that shareholders REJECT the opportunistic and inadequate Westside Offer and take no action in respect of the documents that Westside send to you.
Armour Energy is being advised by Morgans Corporate Limited and HopgoodGanim Lawyers in respect of the Offer.
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