A Chinese firm has lodged a $160 million takeover offer for Queensland coal seam gas operator WestSide.
A Queensland coal seam gas operator has received a $160 million takeover offer from a Chinese firm.
WestSide Corporation operates the Meridian SeamGas CSG fields west of Gladstone in Queensland, and has interests in several gas exploration programs the Bowen Basin.
It has received an off market takeover proposal from Landbridge, a private firm based in Shandong Provence, which has offered 36 cents for every WestSide share.
That’s a significant premium to the 26 cents WestSide shares were valued at before the offer was announced.
WestSide shares gained 3.5 cents, or 13.5 per cent, to 29.5 cents on Monday.
“We believe our offer provides compelling and certain value for WestSide’s shareholders at a time when there is significant illiquidity in WestSide shares and uncertainty over the funding and development pathway for WestSide’s assets,” Landbridge chairman Ye Cheng said.
WestSide’s board is reviewing the offer, which comes with many conditions, including regulatory approval.