Australia Listed Gas Explorer Sunbird Energy Gets Buyout Offer from South Africa's Glendal Power

Southern Africa focused gas explorer Sunbird Energy has received a buyout proposal from Glendal Power & Industries Proprietary Limited, the company announced Wednesday.

Australia listed Sunbird received a non-binding proposal from South Africa’s Glendal Power to undertake a potential takeover bid of all of the shares of the company at an offer price of A$0.18 per share, Sunbird announced.

The proposal is subject to a number of conditions including due diligence, third party financing arrangements and Glendal Power achieving a minimum relevant interest in at least 51% of the aggregate of all Sunbird shares on issue on a fully diluted basis, Sunbird added.

The proposal values Sunbird at over A$25 million.

Although the Sunbird board is considering the proposal and is engaging in discussions with Glendal Power there was no guarantee that a firm takeover bid would be made by the South African company, Sunbird noted.

Glendal Power is a South African based power infrastructure company currently active in the Southern African coal-fired power, solar power and gas infrastructure development sectors.

Sunbird owns a 76 percent interest in the Ibhubesi Gas Project offshore of the west coast of South Africa. Sunbird is developing and will operate the Ibhubesi Gas Project, South Africa’s largest undeveloped gas field. The Ibhubesi Gas Project has multiple development opportunities including gas-fired power projects to supply the high value South African energy market. Sunbird’s joint venture partner in the project is PetroSA, the national oil company of South Africa.

Sunbird also has a portfolio of CBM projects covering an extensive area in prospective coal basins across South Africa. Sunbird is conducting a phased exploration program to define the resource base and demonstrate the commercial potential of its portfolio.