Armour Energy Rejects Westside Takeover Offer

Board of Armour Energy has unanimously recommends that shareholders reject the Westside Corporation’s offer as it significantly undervalues the company.

In a statement released Tuesday the company stated 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.”

Late last month, Westside, a subsidiary of China's Landbridge Group, had launched a conditional A$36.6 million (US$26.2 million) takeover offer for Armour.

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.”