WESTSIDE REJECTS TAKEOVER
Written on the 5 May 2014
WESTSIDE Corp Ltd (ASX:WCL) has rejected a takeover bid by Landbridge Energy Australia, of 40 cents per share.
The subsidiary of Landbridge Group Co, based in China, delivered the bidding statement to the coal seam gas producer on April 24.WestSide’s board of directors say the offer undervalued the company at $177.6 million, failing to take into account a number of projects in the pipeline.
The company recently announced a gas sale agreement with the GLNG (Gladstone Liquefied Natural Gas) consortium, expected to generate more than $110 million in revenue annually – at maximum production and current foreign exchange rates.Landbridge initially offered 36 cents per share on March 10, before increasing the price.
WestSide recommends shareholders do not accept the conditional offer and will release a detailed report explaining the reasons later this month.WCL is trading at 37 cents per unit.