AWE receives Mineral Resources acquisition proposal

Company News

by Kathy Skantzos

Oil and gas exploration company AWE (ASX:AWE) announced it received an acquisition proposal from Mineral Resources (ASX:MIN) after the close of trade on Friday, offering $0.80 cents a share.

This comes after China Energy Reserve and Chemical Group Australia made a second acquisition proposal last week, offering $0.73 a share.

The AWE board said it will evaluate both proposals and will provide shareholders with a recommendation in due course.

The company has advised shareholders not to take any action in relation to the proposals.

Following a successful institutional placement last month which raised $38 million, and a current Share Placement Plan capped at $10 million, AWE has reduced its corporate debt facility limit from $300 million to $125 million, which is likely to result in $1.6 million in savings per year.

Shares in AWE (ASX:AWE) are trading flat at 73 cents.   

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.