Armour Energy Ltd has issued a statement advising its shareholders to reject a takeover bid from Westside Corp. Ltd, a subsidiary of Landbridge Group Co. Ltd.
The takeover has been described by the Directors of Armour Energy as “unsolicited” and “hostile.” The Directors believe that the bid of 12 cents per Armour share is “opportunistic and inadequate,” significantly undervaluing the company in terms of its existing assets, and the potential value it expects to deliver to its shareholders in the near future.
Armour Energy’s Executive Chairman, Nicholas Mather, said: “The offer does not reflect the current or potential value of Armour’s assets and comes at a time when the company is in the process of decisively rebuilding its business and in the context of increasing demand for gas in Australia.”
The Directors also urged shareholders to support two value enhancing initiatives that it plans to make: a proposed transaction with American Energy Partners and an agreement to acquire the Roma Shelf assets from Origin Energy.
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/09092015/armour-energy-directors-rejects-westside-offer-1262/