Mineral Resources (MinRes) has sold shares in Warrego Energy into Hancock Energy’s cash takeover offer.
The drawn-out takeover battle for Perth Basin-based Warrego Energy continues, with MinRes’ decision taking Hancock’s interest in Warrego to 50.54 per cent.
MinRes, which provides mining services to Hancock Prospecting, did not offer any reasoning for its decision.
Hancock Energy director Stuart Johnston also could not provide an explanation.
“There’s been no conversation,” Johnston told The Australian Financial Review. “Before, during or after, I haven’t spoken to anyone at MinRes.”
Credit Suisse energy analyst Saul Kavonic said Strike Energy, which has been making its own play for Warrego Energy, now needed to decide its next move, noting that if it also sold into Hancock’s offer it would realise about $110 million in cash.
If Strike remains on the Warrego register, it would frustrate Hancock’s ability to take full control of the WA gas company.
Strike managing director Stuart Nicholls said the company was considering its options, noting that Strike’s offer remained open until February 13.
“Strike continues to see its offer as the most superior proposal given it has ongoing exposure to the highly coveted assets of the North Perth Basin,” Nicholls said.
“We do see our holding in Warrego as strategic in nature, and we are reviewing our available options at this period of time.”
Hancock and Strike have been battling for the gas asset since early January, with Hancock extending its all-cash bid for Warrego Energy to February 10.
The increase in Hancock’s interest above the 40 per cent mark confirms the level of the offer at $0.36 per share rather than the $0.28 that applied if its interest in Warrego remained below that level.
Johnston encouraged the remaining Warrego shareholders that have not accepted either offer to sell into Hancock’s offer, saying those keen to secure Strike shares could invest directly in that company.
“I don’t see why anyone, given we’ve got the control position now, would want to hang on to those shares,” he said.