Australia's AWE Rejects Acquisition Offer by Lone Star Fund

AWE Limited on Wednesday said it has rejected a proposal from Lone Star Japan Acquisitions, Ltd on behalf of Lone Star Fund, to acquire all of the company’s shares.

The company announced that it has received “an unsolicited indicative, conditional and non-binding proposal from Lone Star Japan Acquisitions, Ltd on behalf of a Lone Star Fund, to acquire all of the shares in AWE for a cash consideration of A$0.80 per share.”

The proposal was subject to a number of conditions, including due diligence, legal documentation and internal approval conditions, AWE added. “The AWE Board has met to consider the proposal and has decided to reject it.”

The Board concluded that it is opportunistic and does not reflect the fair underlying asset value of the company. AWE has appointed UBS, AG Australia as its financial adviser and Allens as its legal adviser.

Sydney headquartered AWE has portfolio of exploration, development and production assets in Australia, New Zealand, Indonesia, China and the USA. AWE has six main producing assets: BassGas Project - offshore Bass Strait, Tasmania, Casino Gas Project - offshore Otway basin, Victoria, Tui Area Oil Project - offshore Taranaki basin, New Zealand, Cliff Head Oil Field - offshore Perth basin, Western Australia, Onshore Perth Basin - Western Australia and Sugarloaf AMI - onshore unconventional, Texas.

AWE also has a number of exploration, appraisal and development opportunities both in Australia and overseas such as Waitsia Gas Project in Perth basin, Western Australia, Lengo Gas Project - Bulu PSC, Indonesia and Ande Ande Lumut Oil Project - Northwest Natuna Sea, Indonesia.