Indicative Takeover Proposal Withdrawn
Perth, May 14, 2013 AEST (ABN Newswire) - WestSide Corporation Limited (
ASX:WCL) has been advised by PetroChina International Investment Company Limited (PetroChina), which submitted an indicative, non-binding proposal to acquire 100 per cent of the shares in WestSide on 19 November 2012, that it will not proceed with the proposal. PetroChina has advised WestSide that it has decided to withdraw from negotiations in relation to the proposal "because the general situation in Australia has changed so much".
WestSide's Executive Chairman Mr Angus Karoll said the Board was disappointed with the advice received from PetroChina given the level of cooperation afforded to them over several months, including the amount of management time invested and the patience of the Company's shareholders throughout the process.
"Importantly, I believe the bidder had a positive view on the quality and value of the Company's core Meridian SeamGas asset," Mr Karoll said.
Since receiving the non-binding acquisition proposal from LNG Limited in February 2012, WestSide's Board has explored a number of transaction structures with the objective of maximising shareholder value. The options available to WestSide, a number of which remain under active consideration, include long term gas sale agreements, joint ventures and the sale of 100 per cent of the shares in the Company.
Discussions with interested parties remain active and will continue to be progressed as a matter of priority following the withdrawal of PetroChina. Other strategic parties are continuing their due diligence investigation of the company with the objective of developing proposals for consideration by the WestSide Board, but there is no certainty that an offer acceptable to the Board will eventuate.
"WestSide will intensify its focus on several valuable commercial opportunities available to the Company as an emerging independent gas producer in Australia's burgeoning energy market, while due diligence by other parties continues. The Board remains committed to delivering the best outcome for shareholders" Mr Karoll said.
Over the last 12 months, the Company has observed increasing shortages of gas for Queensland's Liquefied Natural Gas (LNG) projects and to satisfy domestic gas demand. Recently-completed gas sale agreements by other parties and proposals received by the Company indicate a material firming in gas prices over the last six months.
This firming in gas prices has further reinforced the strategic value of the 680 PJ of Proved and Probable (2P) gross gas reserves at Meridian SeamGas, the vast majority of which remains uncontracted. Meridian SeamGas remains in a strong position to supply the Queensland domestic and export gas markets being the closest producing gas field to Gladstone, just 160km to the east, and is connected via the Queensland Gas Pipeline.
The Board will continue to pursue options which allow shareholders to fully participate in the strategic value that the Company offers to parties short of gas.
WestSide will continue to keep the market informed of any material developments in accordance with its disclosure obligations.
Contact
WestSide Corporation Limited
T: +61-7-3020-0900
F: +61-7-3020-0999
WWW: www.westsidecorporation.com
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