Australian oil and gas company AWE Petroleum has rejected a takeover offer.
The company on Wednesday said it had received an unsolicited indicative, conditional and non-binding proposal from Lone Star Japan Acquisitions, Ltd on behalf of a Lone Star Fund, to acquire all of the shares in AWE for a cash consideration of A$0.80 per share. According to the West Australian, the offer valued the target company at $421.5 million.
According to AWE, which recently appointed new CEO , the proposal was subject to a number of conditions, including due diligence, legal documentation and internal approval conditions.
“The AWE Board has met to consider the Proposal and has decided to reject it. The Board concluded that it is opportunistic and does not reflect the fair underlying asset value of the company. AWE has appointed UBS, AG Australia as its financial adviser and Allens as its legal adviser,” AWE said in a statement.
This is not the first time AWE has been a takeover target. The company in 2013 rejected a takeover offer by Senex Energy deeming it not in the best interests of AWE shareholders, and not appropriate to pursue.