Written on the 18 September 2014 by Laura Daquino
WESTSIDE Corporation Limited has been removed from the boards of the ASX this week following its compulsory takeover.
The company, which traded under the security code WCL, delisted on close of trading on Thursday.
This is following notification that Landbridge Energy Australia Pty Ltd would acquire all ordinary shares of the gas producer following an offer on May 8 this year for $178 million.
The news came after WestSide’s largest shareholder, New Hope Corporation, sold the bulk of its stake in the company.
The offer price was $0.40 with the offer period set to close on July 22 – unless a competing offer arose – but was extended to August 5.
In chairman Robert Neale’s own words, WestSide “reluctantly recommended” for shareholders to accept Landbridge’s offer in an announcement on July 11 at a time when Landbridge held a 49 per cent stake in the company.
In the same statement, Neale said WestSide had “worked hard to solicit alternative interest in the company (…) but no alternative proposal had been forthcoming”.
The apparent resentment stemmed from Landbridge’s offer “failing to adequately recognise the full value for shareholder’s from the new gas sale agreement with GLNG and other assets owned by WestSide”.
WestSide has significant gas production infrastructure, gas reserves and exploration interests in Queensland.
“We have all worked very hard to reposition WestSide for success, so it is disappointing for all of us to see effective control of the company pass at this price before any of the benefits from that success can be reaped,” Neale says.
“On behalf of the board and management, I would like to thank all WestSide staff and contractors who have worked tirelessly over the last several years, and in particular over the last nine months, to extract value from our assets.
“Lastly, I want to thank WestSide shareholders for their past support.”
The company’s share price closed at $0.4 cents per share.