Beach Energy Limited (ASX:BPT) has launched an unconditional cash bid to acquire all the shares it does not already own in Adelaide Energy Limited (ASX:ADE), valuing the target at around $93 million.
Beach holds a 19.95 per cent stake in Adelaide Energy and is offering $0.20 per share to acquire the remaining interest. The offer is a 43 per cent premium to Adelaide Energy’s last trade of $0.14.
Beach says the takeover proposal is a logical next step for the company and will remove ongoing funding concerns for Adelaide Energy’s unconventional gaswork program.
The on-market offer will be funded from Beach’s existing cash reserves and is due to close on December 22, 2011.
In the 2011 financial year Beach Energy booked a net loss of $97.5 million.
