logo-loader
view88 Energy Ltd

88 Energy takeover offer for XCD Energy goes unconditional

The buyer now has the backing of 59.27% of XCD's shares and said it won't improve its offer further

88 Energy Ltd - 88 Energy takeover offer for XCD Energy goes unconditional

88 Energy Ltd (LON:88E) (ASX:88E) has declared its takeover bid for XCD Energy unconditional and said the offer won’t be increased.

Earlier this week, 88 Energy reported that it had received acceptances representing 37.58% of XCD’s shares and it now confirms it has passed 59.27%.

The company also noted that XCD shareholders which accepted the offer before it became unconditional will receive accelerated payment, before June 26, whilst subsequent acceptances will be paid within seven days of their acceptance being processed.

It added that once it has received 90% or more, it intends to proceed with compulsory acquisition of outstanding minority shareholdings and options.

READ: 88 Energy takeover target XCD upgrades resource estimates

In a statement, 88 Energy said that “if remaining XCD Energy shareholders and listed options do not accept the offers, and 88 Energy does not reach compulsory acquisition thresholds by the closing date of the offers, they will remain a minority shareholder in XCD Energy with reduced influence in the running of the business."

“Further, 88 Energy's controlling position may affect the liquidity of the minority holders of securities in XCD Energy. This may increase the difficulty for minority securityholders to sell their XCD Energy shares or listed options at an attractive price,” it added.

88 Energy noted that it would also delist XCD from the ASX, further affecting the liquidity of the remaining shares.

The takeover offer is currently scheduled to close at 7:00pm Sydney time on June 25.

In May, 88 Energy agreed a recommended takeover offer with XCD’s board as it improved its offer – to 2.4 new 88 Energy shares per XCD share, and 0.7 shares for every XCD listed share option – giving it a per share value of 1.2 Australian cents, or about A$7.8mln in total.

The all-paper transaction sees the creation of an explorer with a diversified portfolio on Alaska’s North Slope, with three distinct key areas: Project Icewine, Project Peregrine, and the Yukon licences.

It will have improved scale, market presence and funding capability, and share liquidity, according to AIM and ASX listed 88 Energy.

The new company will leverage 88 Energy’s geological and operational expertise, specific to the North Slope of Alaska where it has drilled four wells and acquired several 2D and 3D seismic data.

Significantly, for 88 Energy shareholders, the deal adds fresh drilling opportunities which promise catalysts whilst the company continues the progression of the existing discoveries, conventional and unconventional, which require further appraisal and de-risking work.

Quick facts: 88 Energy Ltd

Price: 0.27 GBX

AIM:88E
Market: AIM
Market Cap: £23.66 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of 88 Energy Ltd named herein, including the promotion by the Company of 88 Energy Ltd in any Content on the Site, the Company receives from said...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

88 Energy Ltd - Proactive One2One Virtual Event

88 Energy Ltd’s (LON:88E) Dave Wall presents to investors at the Proactive One2One Virtual Event. Its recent quarterly activities report highlighted the group's takeover of XCD Energy PLC (LON:XCD). The Alaska explorer detailed the soon-to-complete takeover among the features of the period ended...

2 weeks ago

2 min read