In today’s briefing:
- Warrego Enters Into A Scheme With Beach
- Nearmap (NEA AU)’s Update Results in an Unwarranted Increase in the Spread
Warrego Enters Into A Scheme With Beach
- The Stokes’ family-backed Beach Energy (BPT AU) is offering Warrego Energy (WGO AU)‘s shareholders $0.20/share, in cash, by way of a Scheme. That’s a 36% premium to the one-month VWAP.
- A contingent value payment may be payable to Warrego shareholders from the sale of Warrego’s Spanish assets within 12 months
- Warrego’s board unanimously recommend the Beach deal. The transaction is expected to complete in early March. The wild card is whether Strike Energy (STX AU) pitches a revised Offer.
Nearmap (NEA AU)’s Update Results in an Unwarranted Increase in the Spread
- Nearmap Ltd (NEA AU)’s litigation and trading update resulted in the spread to Thoma Bravo’s A$2.10 offer widening to 7.7%. The scheme meeting is on 25 November.
- There is no chance that the MAC clause will be triggered due to the downbeat trading update. However, the update is softening the stance of some of the retail dissenters.
- There is a small chance of a bump as peers have re-rated. Nevertheless, the low spread prior to the update suggested that the risk of the NO vote was minimal.
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