Sharechat Logo

L&M Energy chairman Loudon exceeds 80% acceptance in takeover offer

Tuesday 11th December 2012

Text too small?

L&M Energy chairman and creditor Geoff Loudon has drawn more than 80 percent acceptances for his takeover offer.

Loudon's New Dawn Energy has acceptance for 80.4 percent of L&M, according to a substantial shareholder notice yesterday. It needs to get to 90 percent to declare the offer unconditional.

The company made its offer in October at 6 Australian cents a share, valuing the target at A$45.3 million, winning the support of L&M's independent directors. An independent valuation by KordaMentha put the value at between zero and 5.1 Australian cents. New Dawn has offered between 0.004 Australian cents and 5.99 cents for L&M's options.

L&M's dual-listed shares last traded at 5.8 Australian cents and have declined 11 percent this year.

The company holds coal seam gas exploration permits in the South Island, petroleum exploration permits in the Taranaki basin, coal prospecting permits in the North Island, and shale gas exploration permits in Southland.

Independent director Trevor Taylor had said there was a relatively low prospect of L&M receiving a superior offer, while noting that the company probably needed to raise more capital next year. In June, Loudon provided a $5 million bridging loan for the company.

The offer closes on Jan. 11. L&M first listed in January 2007.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

AIA June 2020 Monthly Traffic Update and July 2020 Preview
PCT - Delivering on strategy underpins strong operating result
KFL - August 2020 monthly update
BRM - August 2020 monthly update
MLN - August 2020 monthly update
Further COVID-19 Restrictions at SkyCity’s New Zealand Properties
FY20 results guidance met, Results date, Banking Facility
Sky sells OSB assets to NEP NZ, secures 10 year partnership
NZX fully operational - announcement re COVID-19
Heartland Market Update

IRG See IRG research reports