The higher price reflects the substantial recent increase in the value of Nexus shares following the takeover bid by Anzon Australia.

Anzon had criticised the low price of Nexus’ previously proposed 47c/share placement, saying that it would deliver a windfall gain to a fortunate few chosen investors. This second tranche placement was to follow a first tranche under which 36.9 million shares were placed with institutional investors at 47c each.

Anzon’s current 1-for-2 scrip bid values Nexus at 65.5c/share, but Nexus is currently trading at 73c. Placing 57 million shares at 47c would have risked a share price drop as investors went for quick profit-taking.

In any case, given the recent surge in Nexus’ share price, shareholders would probably have rejected the original proposal for the second tranche placement.

Nexus now also proposes to make an offer to existing shareholders, other than the international institutions and sophisticated investors, to subscribe for up to 8000 shares, also at 62c/share.

Both the re-priced placement and the offer to shareholders will be subject to shareholder approval at a shareholders’ meeting to be convened shortly. The Nexus board now proposes that the shareholders’ meeting scheduled to be held on April 21 will be cancelled.

“Once shareholder approval has been obtained and the re-priced placement has been completed, we will be fully funded to complete the next phase of our capital expenditure program to commercialise our Longtom Gas Field as well as rapidly progress the Crux gas condensate field,” said managing director Ian Tchacos.

“Our shareholders will then be able to benefit from the full upside of our substantial resource base at Longtom, Crux and Echuca Shoals.”