AWE Limited (ASX: AWE) refers to its announcement on 29 January 2018 that it had received a proposal from Mitsui & Co Ltd to acquire 100% of the shares in AWE for cash consideration of $0.95 per share, to be effected by way of an off-market takeover bid for AWE.
The AWE Board has assessed the Mitsui Proposal, and has determined that it is or may reasonably be expected to lead to a Superior Proposal compared to the Mineral Resources Limited (MinRes) (ASX:MIN) scheme proposal announced by AWE on 21 December 2017. AWE has also now reached in-principle agreement with Mitsui in relation to the terms of a bid implementation deed to implement the Mitsui Proposal.
AWE late yesterday issued a notice to MinRes under the matching rights regime in the MinRes Scheme Implementation Deed (MinRes SID), which gives MinRes three business days to match the Mitsui Proposal, expiring on Friday 2 February 20183. If MinRes does not match the Mitsui Proposal within that period, AWE intends to enter into the Mitsui bid implementation deed, and to change its recommendation to a recommendation that AWE shareholders accept the Mitsui takeover bid, in the absence of a superior proposal and subject to the independent expert concluding that the Mitsui takeover bid is fair and reasonable.
Until MinRes has had an opportunity to match the Mitsui Proposal, the AWE Directors maintain their existing recommendation in favour of the MinRes scheme proposal.
The AWE Board advises shareholders to take no action in relation to the Mitsui Proposal or the previously announced China Energy Reserve and Chemical Group Australia Pty Ltd (CERCG) offer until they receive further advice from the AWE Board.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.