Mitsui victory for AWE battle?

AWE’s board has recommended Mitsui’s all cash bid of A$0.95/share which was received on 28^th January. This superior offer follows a heated battle since the end  of last year.

• November 2017: CERCG cash bid of A$0.71/share conditional on due diligence, rejected following AWE’s assessment that it undervalued the company
• December 2017: CERCG revised cash offer of A$0.73/share
• December 2017: Mineral Resources scrip offer at A$0.80/share
• December 2017: Revised Mineral Resources cash and scrip offer at A$0.83/share – recommended by the AWE board on 21st December
• January 2018: Mitsui all cash offer at A$0.95/share

The Mitsui bid is comparatively clean – all cash, no further due diligence and FIRB approval already obtained. As Mineral Resources did not come back with a superior offer by the deadline of 2^nd February, AWE has entered into an implementation deed with Mitsui with a recommendation to shareholders by the AWE board. Mitsui has a right to match any superior offer and there is a break fee if AWE changes its recommendation.

Mitsui is a natural buyer of AWE and its assets with an established history in Australian E&P. It is in the Northwest Shelf LNG project with Mitsubishi on the west coast, in offshore Victoria gas and Queensland Coal Bed Methane gas project.

Absent any superior offers, Mitsui offer documents are planned to be dispatched to shareholders on Monday 12th February with the offer period for shareholders to accept the offer open until 20th March. The offer required 50.1% acceptances from shareholders to proceed.