Australian Coal Seam Gas Explorer WestSide Rejects Landbridge Takeover Offer

WestSide Corporation has rejected Landbridge Energy’s takeover bid calling it undervalued.

“WestSide’s board of directors has carefully considered the conditional offer for $0.40 per WestSide share contained in the Bidder's Statement and is of the view that it does not represent fair value for the Company as, amongst other things, it does not take adequate account of the value anticipated to accrue to WestSide on the terms of the recently announced gas sale agreement (GSA) with the GLNG consortium,” WestSide said in a statement Monday.

In March, China based Landbridge Group made an unsolicited off market takeover bid for all of the shares in WestSide Corporation Limited for cash consideration of $0.36 per share.

The proposal was raised to A$0.40 per share a week ago from A$0.36.

According to WestSide, the GSA will enable the Meridian Joint Venture to sell up to 65 TJ/d of gas. At the maximum production rate of 65TJ/d this could generate annual revenue to WestSide in excess of A$110 million, the company said.

The company advised shareholders to reject the offer for $0.40 per WestSide share.

Landbridge Group is involved in port logistics, petrochemicals, timber trading and processing, and real estate development.

Westside is a publicly listed Brisbane-based coal seam gas producer with gas production, significant reserves and exploration interests in Queensland, Australia.