IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>Hancock increased its <a href="https://www.smartkarma.com/entities/warrego-energy-ltd-082ab214-f4bb-4224-b321-8977486cd661" target="_blank" data-smartkarma-citation="entities:7808:1" rel="noopener">Warrego Energy (WGO AU)</a> off-market takeover bid by 28.6% from A$0.28 to A$0.36 per share along with a 40% minimum acceptance condition.</li>
<li>Hancock’s latest move is an attempt to ward off a potential offer from a third suitor who has built up a 15% stake (rumoured to be <a href="https://www.smartkarma.com/entities/mineral-resources-ltd" target="_blank" data-smartkarma-citation="entities:15103:1" rel="noopener">Mineral Resources (MIN AU)</a>). </li>
<li>
<a href="https://www.smartkarma.com/entities/strike-energy-ltd" target="_blank" data-smartkarma-citation="entities:12473:1" rel="noopener">Strike Energy (STX AU)</a>’s all-scrip offer remains the highest as it is the next takeover target. However, Gina Rinehart’s ego suggests that she will persist no matter the cost.</li>
</ul>


Hancock increased its Warrego Energy (WGO AU) off-market takeover bid by 28.6% from A$0.28 to A$0.36 per share along with a 40% minimum acceptance condition.
Hancock’s latest move is an attempt to ward off a potential offer from a third suitor who has built up a 15% stake (rumoured to be Mineral Resources (MIN AU)). 

Strike Energy (STX AU)’s all-scrip offer remains the highest as it is the next takeover target. However, Gina Rinehart’s ego suggests that she will persist no matter the cost.


Warrego (WGO AU): Hancock Ups Its Offer to A$0.36 as MinRes Looms Large

<ul>
<li>The <a href="https://www.afr.com/street-talk/15pc-of-warrego-s-register-changes-hands-fingers-point-to-minres-20230104-p5caeo" target="_blank" rel="noopener">AFR reports</a> that <a href="https://www.smartkarma.com/entities/mineral-resources-ltd" target="_blank" data-smartkarma-citation="entities:15103:1" rel="noopener">Mineral Resources (MIN AU)</a> was the buyer of 15% of outstanding shares at A$0.35, 25.0% above Hancock and 4.5% above <a href="https://www.smartkarma.com/entities/strike-energy-ltd" target="_blank" data-smartkarma-citation="entities:12473:1" rel="noopener">Strike Energy (STX AU)</a>’s offer.</li>
<li>MinRes’ move is motivated by the desire to have a say in the recent Perth Basin consolidation. It recently lobbed an all-scrip takeover offer for <a href="https://www.smartkarma.com/entities/norwest-energy-nl" target="_blank" data-smartkarma-citation="entities:1433:1" rel="noopener">Norwest Energy NL (NWE AU)</a>.   </li>
<li>
<a href="https://www.smartkarma.com/entities/warrego-energy-ltd-082ab214-f4bb-4224-b321-8977486cd661" target="_blank" data-smartkarma-citation="entities:7808:1" rel="noopener">Warrego Energy (WGO AU)</a>'s three largest shareholders are now the three suitors. The emergence of MinRes (if confirmed) suggests that the takeover battle is far from done. </li>
</ul>


The AFR reports that Mineral Resources (MIN AU) was the buyer of 15% of outstanding shares at A$0.35, 25.0% above Hancock and 4.5% above Strike Energy (STX AU)’s offer.
MinRes’ move is motivated by the desire to have a say in the recent Perth Basin consolidation. It recently lobbed an all-scrip takeover offer for Norwest Energy NL (NWE AU).   

Warrego Energy (WGO AU)'s three largest shareholders are now the three suitors. The emergence of MinRes (if confirmed) suggests that the takeover battle is far from done. 


Warrego (WGO AU): Has MinRes Gatecrashed the Party?

<ul>
<li>
<a href="https://www.smartkarma.com/entities/strike-energy-ltd" target="_blank" data-smartkarma-citation="entities:12473:1" rel="noopener">Strike Energy (STX AU)</a>’s revised off-market takeover is 1 STX share per <a href="https://www.smartkarma.com/entities/warrego-energy-ltd-082ab214-f4bb-4224-b321-8977486cd661" target="_blank" data-smartkarma-citation="entities:7808:1" rel="noopener">Warrego Energy (WGO AU)</a> share, a 29.0% premium to its previous offer and a 21.4% premium to Hancock’s offer.</li>
<li>Hancock has the war chest to comfortably outbid STX. However, the smart move for Hancock is to be disciplined on price and instead bid for the combined STX/WGO post-completion.</li>
<li>The Board’s view will be sent in Target’s statement to be despatched by 29 December. At the last close, the gross spread to STX’s offer is 6.3%. </li>
</ul>



Strike Energy (STX AU)’s revised off-market takeover is 1 STX share per Warrego Energy (WGO AU) share, a 29.0% premium to its previous offer and a 21.4% premium to Hancock’s offer.
Hancock has the war chest to comfortably outbid STX. However, the smart move for Hancock is to be disciplined on price and instead bid for the combined STX/WGO post-completion.
The Board’s view will be sent in Target’s statement to be despatched by 29 December. At the last close, the gross spread to STX’s offer is 6.3%. 


Warrego (WGO AU): Strike Energy (STX AU) Strikes with a Revised Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beach-energy-ltd" target="_blank" data-smartkarma-citation="entities:795:1" rel="noopener">Beach Energy (BPT AU)</a>’s revised offer of A$0.25 per share was quickly gazumped by Hancock's revised off-market proposal of A$0.28 for <a href="https://www.smartkarma.com/entities/warrego-energy-ltd-082ab214-f4bb-4224-b321-8977486cd661" target="_blank" data-smartkarma-citation="entities:7808:1" rel="noopener">Warrego Energy (WGO AU)</a>. All other terms remain unchanged.</li>
<li>Speculation that <a href="https://www.smartkarma.com/entities/strike-energy-ltd" target="_blank" data-smartkarma-citation="entities:12473:1" rel="noopener">Strike Energy (STX AU)</a> would also be a takeover target has resulted in its all-scrip offer rising to A$0.248 per share (at last close).</li>
<li>Expect another round of the takeover battle as the bidders are well capitalised and the strategic importance of Perth Basin as Australia’s premier onshore basin.</li>
</ul>



Beach Energy (BPT AU)’s revised offer of A$0.25 per share was quickly gazumped by Hancock's revised off-market proposal of A$0.28 for Warrego Energy (WGO AU). All other terms remain unchanged.
Speculation that Strike Energy (STX AU) would also be a takeover target has resulted in its all-scrip offer rising to A$0.248 per share (at last close).
Expect another round of the takeover battle as the bidders are well capitalised and the strategic importance of Perth Basin as Australia’s premier onshore basin.


Warrego (WGO AU)’s Rinehart V Stokes Takeover Tussle in Full Swing

<ul>
<li>Hancock’s offer of A$0.23 is at a 15% premium to <a href="https://www.smartkarma.com/entities/beach-energy-ltd" target="_blank" data-smartkarma-citation="entities:795:1" rel="noopener">Beach Energy (BPT AU)</a>’s A$0.20 offer and a 21.1% premium to <a href="https://www.smartkarma.com/entities/strike-energy-ltd" target="_blank" data-smartkarma-citation="entities:12473:1" rel="noopener">Strike Energy (STX AU)</a>’s scrip value on 29 November. </li>
<li>The Hancock off-market offer for <a href="https://www.smartkarma.com/entities/warrego-energy-ltd-082ab214-f4bb-4224-b321-8977486cd661" target="_blank" data-smartkarma-citation="entities:7808:1" rel="noopener">Warrego Energy (WGO AU)</a> has no minimum acceptance condition or a material adverse change clause. The offer closes on 31 January 2023.</li>
<li>STX could be Hancock’s next logical target to facilitate Perth Basin consolidation. Between STX and BPT, BPT is more likely to return with an improved offer.  </li>
</ul>


Hancock’s offer of A$0.23 is at a 15% premium to Beach Energy (BPT AU)’s A$0.20 offer and a 21.1% premium to Strike Energy (STX AU)’s scrip value on 29 November. 
The Hancock off-market offer for Warrego Energy (WGO AU) has no minimum acceptance condition or a material adverse change clause. The offer closes on 31 January 2023.
STX could be Hancock’s next logical target to facilitate Perth Basin consolidation. Between STX and BPT, BPT is more likely to return with an improved offer.  


Warrego (WGO AU) In a Three-Way Tussle with Hancock’s A$0.23 Offer

Australia

Sino Gas & Energy Holdings Ltd., through its subsidiary, is an Australian exploration and production company developing gas assets in China.

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Sino Gas & Energy Holdings (SEH AU)

Warrego (WGO AU): Hancock Ups Its Offer to A$0.36 as MinRes Looms Large

Strike’s all-scrip offer remains higher than Hancock's revised offer as it is the next logical takeover target. However, Gina Rinehart’s ego...

Arun George

Warrego (WGO AU): Has MinRes Gatecrashed the Party?

MinRes is rumoured to be the buyer of a 15% stake. The emergence of MinRes (if confirmed) suggests that the takeover battle is far from done.

Arun George

Warrego (WGO AU): Strike Energy (STX AU) Strikes with a Revised Offer

The smart move for Hancock is to be disciplined on price and instead bid for the combined STX/WGO post-completion. At the last close, the gross...

Arun George

Warrego (WGO AU)’s Rinehart V Stokes Takeover Tussle in Full Swing

Shares closed slightly above Hancock's offer. Expect another round of bids as the bidders are well capitalised and the strategic importance of...

Arun George

Warrego (WGO AU) In a Three-Way Tussle with Hancock’s A$0.23 Offer

Due to the expectation that BPT or STX returns with an improved offer, the WGO shares closed 11% above Hancock’s offer. Expect BPT to come back...

Arun George

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