Mitsui Close to Acquiring Australian AWE

In a move that could pave the way for Mitsui to takeover Australian explorer AWE, China Energy Reserve and Chemical Group (CERCG) has decided to withdraw its offmarket takeover offer for the Australian company.

“The effect of the withdrawal of the CERCG offer is that no acceptances will be processed by CERCG, and CERCG will not pay any consideration to AWE shareholders who had accepted the CERCG offer. On this basis, from the withdrawal date, AWE shareholders who had accepted the CERCG Offer will be free to deal with their AWE shares as they see fit,” AWE said February 27.

AWE said that its board continues to unanimously recommend that shareholders accept the offmarket takeover offer by Mitsui to acquire 100% of the shares in AWE for cash consideration of A$0.95/share, in the absence of a superior proposal. CERCG had offered to acquire 100% of AWE for a cash consideration of A$0.73/share.

CERCG began the quest to acquire AWE in November 2017 when it bid A$0.71/share, which it later increased to A$0.73 per share.

AWE has gained attention due to its development of the Waitsia gas project in Western Australia. It’s also focused on securing new gas sales contracts for Casino and BassGas on the country’s east coast.