Oil and gas producer Drillsearch has launched a $118 million take-over bid of Acer Energy Limited at 25.5¢ cash per share.

 

“We believe our cash offer for Acer is full and fair, providing Acer shareholders with certainty of value for their shares. We are offering Acer shareholders a significant premium for their shares on attractive and flexible payment terms,” Drillsearch’s Chairman Jim McKerlie said.

 

“Importantly, Acer’s largest shareholder, Republic  Investment Management, has sold 19.90% of its interest in Acer to Drillsearch and intends to accept the Offer for its remaining 18.82% holding, in the absence of a superior announced offer.

 

“In addition, we will today be lodging our Bidder’s Statement with ASIC, Acer and ASX and will immediately acquire additional Acer shares on market.”

 

The move forms part of Drillsearch’s ongoing initiative to consolidate its position in the western Cooper Basin and, following the acquisition, the company will hold the largest discovered, uncommitted conventional gas resource in the area.

 

Acer Energy’s Board has held an emergency meeting over the offer, urging its shareholders to take no action over the offer, describing the offer as ‘opportunistic timing’ as the company prepares to roll out an extensive work program.