Japanese company Mitsui has confirmed a non-binding proposal to acquire 100 per cent ownership of Australian energy company AWE for a value of $602 million.
The current proposal put forward to AWE will remain non-binding until AWE terminates its less profitable Mineral Resources scheme; AWE was approached by the company with a takeover bid at 83 cents per share ($526 million) in December last year. Mitsui’s offer for 100 per cent of AWE’s shares, meanwhile, works out at 95 cents per share.
Mitsui considers the proposal a potentially high-quality investment for its portfolio of Australian oil and gas assets, particularly AWE’s current interest in the Waitsia gas project in Western Australia.
Mitsui has asked for a 14.5 per cent premium on the value of Mineral Resources arrangement proposal, a 74.3 per cent premium to AWE’s share price and a 30.1 per cent premium to the recent conditional takeover bid by China Energy Reserve and Chemical Group Australia (CERCG Australia).