Strike has eyes on UIL
Oil and gas explorer Strike Energy wants to acquire UIL Energy.
Strike has offered 7.3 cents per share - a 43.4 per cent premium for UIL Energy shares on the company’s 30-day volume weighted average price on October 19.
If the takeover goes ahead, Strike and UIL will form a new merged group, consolidating both company’s portfolios.
The deal requires Strike to raise at least $13 million of capital and achieve a minimum shareholder acceptance of 50.1 per cent.
The large onshore gas resource Southern Cooper Basin in South Australia is at the heart of the deal.
Earlier this year, Strike formed a 50-50 joint venture with Warrego Energy over the West Erregulla (EP469) exploration block in the North Perth Basin.
Strike Energy chairman John Poynton says the transaction “plays to Strike’s strengths of being a low cost and high-impact, onshore exploration and appraisal operator, which makes it an extremely attractive opportunity for both UIL Energy and Strike Energy shareholders alike.”
UIL’s board of directors intend to accept Strike’s offer in the absence of a superior proposal.