It’s a 3-way tug of war for Warrego Energy as Gina Rinehart launches an offer

Marc Kennis Marc Kennis, December 1, 2022

There are now 3 bidders for Warrego Energy (ASX:WGO). Gina Rinehart has joined Beach Energy (ASX:BPT) and Strike Energy (ASX:STK) in making a bid – but will she get her way?

 

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Warrego Energy looked set to be taken over by Beach

Warrego Energy owns 50% of the West Erregulla onshore gas project in the Perth Basin. The other half belongs to Strike Energy (ASX:STX), which is the sole operator. 

Strike has tried to buy Warrego before, but the M&A situation heated up last month when Beach Energy (ASX:BPT) made a 20c a share bid, valuing it at $250m. Last Monday, Warrego formally recommended to shareholders that they vote in favour of the Scheme.

 

Gina wants a piece

But barely two days later, Gina Rinehart’s Hancock Prospecting offered a 23c a share bid. Australia’s wealthiest woman is no stranger to this space, owning stakes in similar companies, including Senex and Norwest Energy.

Although her bid is higher and she has no shortage of cash, the company has only promised to consider the offer. It has formally entered a Scheme Implementation Deed with Beach and although it is permitted to break the deal for a superior proposal, Beach has the right to match it and is liable to a ‘break fee’. 

 

Warrego Energy (ASX:WGO) share price chart (Graph: TradingView)

 

Warrego shares have rocketed in recent days as the bidding war unfolds. We think all investors, shareholders of this company or not, should watch this space. 

 

 

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