Australia's WestSide Corporation, a company with interests in coal seam gas (CSG) projects in Queensland, revealed Tuesday that it has received a takeover proposal worth $192.4 million (AUD 184.4 million) from an undisclosed party.
The cash bid of $0.54/share (AUD 0.52/share) – for 100 percent of WestSide's shares – represents a 35 percent premium over WestSide's last closing share price of $0.40/share (AUD 0.385/share).
WestSide said in a published statement that it has not yet formed a view on the indicative offer price, and that it advises shareholders to "take no action at present."
The company operates the Meridian SeamGas CSG fields west of Gladstone in Queensland's Bowen Basin. The Meridian gas fields comprise of a range of CSG assets; including a petroleum lease, gas rights in mining leases and gas compression and pipeline infrastructure connected to Queensland's commercial gas network. WestSide holds a 51 percent interest in the fields, while Mitsui E&P Australia holds the remaining 49 percent.
The company is also involved in two other exploration and appraisal programs in the Bowen Basins; the ATP 769P and ATP 688P sites. WestSide holds a 25.5 percent interest in both of the tenements. The remaining stakes of 24.5 percent and 50 percent are held by Mitsui E&P Australia and Queensland Gas Company (QGC) respectively.
WestSide also owns assets in two Galilee Basin tenements; ATP 974P and ATP 978P. The company holds the majority 51 percent operating interest in both of the tenements. Mitsui E&P holds the remaining stakes in ATP 974P and ATP 978P.