AWE Limited
(ASX:AWE) has rejected a non-binding and conditional scrip based takeover proposal from Senex Energy Limited
(ASX:SXY).
The board determined the proposal was not in the best interests of AWE shareholders.
Since the board advised Senex of its decision, Senex has formally withdrawn its offer.
After obtaining external legal and financial advice, AWE found the offer significantly undervalued AWE shares.
AWE’s board says while it recognises the potential to add shareholder value via M&A deals, it remains confident in the company’s ability to create further value for shareholders through the commercialisation of its portfolio.
The independent oil and gas explorer recently announced it was aiming to double production and triple cash flow by 2017.
AWE delivered a net profit of $20 million in fiscal 2013.
