Drillsearch Launches Bid for Acer Energy, Australia

October 4, 2012

Drillsearch Energy announced an offer (through its wholly owned subsidiary Drillsearch (Central) Pty Limited) to acquire all of the ordinary shares in Acer Energy for 25.5¢ cash per share by way of an off-market takeover offer. The Offer values Acer at approximately $118 million.

Acer Energy’s exploration and production tenements are located in the onshore Cooper Basin in central Australia and offshore in the Bass Basin between the mainland and Tasmania.

Drillsearch Chairman Mr Jim McKerlie said: “We believe our cash offer for Acer is full and fair, providing Acer shareholders with certainty of value for their shares. We are offering Acer shareholders a significant premium for their shares on attractive and flexible payment terms.

“Importantly, Acer’s largest shareholder, Republic Investment Management, has sold 19.90% of its interest in Acer to Drillsearch and intends to accept the Offer for its remaining 18.82% holding, in the absence of a superior announced offer.

“In addition, we will today be lodging our Bidder’s Statement with ASIC, Acer and ASX and will immediately acquire additional Acer shares on market. We commend our offer to Acer shareholders,” Mr McKerlie said.

Significant Premium

Drillsearch’s Offer represents a significant premium to the recent and historical volume weighted average price (VWAP) of Acer shares. The Offer price of 25.5¢ for each Acer share represents:

A premium of 53% to the three-month VWAP of $0.166 per Acer Share up to and including 3 October 2012; and
A premium of 31% to the closing price of $0.195 per Acer Share on 3 October 2012 (being the last Trading Day before the Announcement Date).

Drillsearch Managing Director Mr Brad Lingo said: “The takeover offer for Acer is aimed at consolidating Drillsearch’s position in the western Cooper Basin. Post-acquisition, Drillsearch will hold the largest discovered, uncommitted conventional gas resource in the Cooper Basin outside of the Cooper Basin Joint Venture partners.

“Through this Offer, Drillsearch is providing Acer shareholders the opportunity to realise value ahead of significant funding requirements, and at a price at which Acer has not traded above for more than three years,” Mr Lingo said.

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LNG World News Staff, October 04, 2012; Image: Acer