JANUARY: QGC moves to take over Sydney Gas
NOW a takeover target itself, Queensland Gas Company launched its own $A88 million all-scrip bid for fellow coal seam methane producer Sydney Gas at the beginning of last year.
The offer was viewed as a way for worried Sydney Gas shareholders to get out of the embattled company, which at that time was suffering from a string of controversies and a share price that had plummeted 70% in the 12 preceding months.
After two months of hostilities, QGC eventually withdrew its takeover proposal, saying it “no longer considered Sydney Gas a value proposition” for its shareholders.
MARCH: Anzon targets Nexus for takeover
ANZON Australia launched a $172 million hostile takeover for fellow Gippsland Basin player Nexus Energy.
Anzon argued that it was a stronger, less risky company than Nexus. However, Nexus hit back with claims that Anzon was a one-asset company that appeared to be experiencing problems in developing its Basker Manta Gummy fields.
The punters backed Nexus and Anzon only secured about 17% of NXS stock by the close of the offer. It is now a major shareholder but the takeover fight left such bitterness that Nexus has refused to give Anzon a seat on the board.
AGL and Alinta reach friendly truce
AFTER weeks of trying to acquire each other through hostile takeovers, warring downstream energy players Australian Gas Light and Alinta agreed to merge their assets.
Under the merger, Alinta took control of most of AGL's eastern Australian infrastructure assets and asset management business, worth about $A6.45 billion, while AGL bought 33% of Alinta's Western Australian retail and co-generation business for $367 million.
MAY: Arrow aims at CH4
COAL seam methane producers Arrow Energy and CH4 wrapped up a $140 million friendly merger to create Australia’s largest independent CSM company.
The merger combined Arrow's coal seam gas projects in southeast Queensland, including its Kogan North project, with CH4's gas projects in the Bowen Basin in northern Queensland, including its Moranbah Gas Project.
Once the deal was wrapped up in August, Arrow CEO Nick Davies said the company would now focus on improving its margins by looking at downstream gas opportunities.
AUGUST: Woodside gets serious in the GoM
IN A move to boost its presence in the Gulf of Mexico, Woodside Petroleum launched a $US883 million ($A1.16 billion) hostile takeover bid for New Orleans-based oil and gas producer Energy Partners.
A successful takeover would have immediately added about 28,000 barrels of oil equivalent to Woodside’s daily output, accounting for about 12% of the expanded company’s production.
But by October, it became apparent that the planned takeover was falling short. Woodside made a third extension of its offer for the company, but at that point had received tenders for less than 1% of Energy Partners’ stock. In late November, Woodside finally conceded its bid had failed.
SEPTEMBER: Uganda partner bids $A1.47b for Hardman, sparks further takeover speculation
HARDMAN Resources last month waved goodbye to the Australian Stock Exchange, following a successful $1.47 billion takeover by its partner in Uganda, Tullow Oil.
HDR had been the worst performer on the S&P/ASX 200 Energy Index in the six months prior as a result of production problems at Chinguetti, its only producing asset.
About 94% of Hardman’s shareholders voted in favour of the takeover at a meeting in Perth on December 18.
The takeover announcement also fuelled speculation that other Australian mid-caps, such as Roc Oil, could become takeover targets.
Beach gets to corner Delhi but cops backlash from Great Artesian shareholders
BEACH Petroleum spoiled Santos’ plans of controlling 85% of the Cooper Basin oil and gas fields, after it bought out Delhi Petroleum for $574 million.
The announcement actually preceded Beach’s admission that it had made a formal bid for unlisted Delhi and the associated listed Floating Interest Energy Linked Securities loan notes issued by the Australian Onshore Energy Fund.
The acquisition has given Beach a 21% interest in more than 200 oil and gas fields covering the Cooper and Eromanga Basins in South Australia and Queensland. It also more than trebled its oil and gas reserves from 36 million barrels of oil equivalent (MMboe) to more than 101MMboe.
While Delhi was easy prey, it has a different story regarding Beach’s plans for Great Artesian Oil and Gas, in which it is a majority stakeholder with 19.9%.
At Great Artesian’s annual general meeting, shareholders fought back over Beach’s dumping of Great Artesian managing director Ray Shaw and the resignation of the company’s entire board by voting in a new pro-Shaw chairman and director.
Even though it appeared as though Shaw would continue in his current role, Great Artesian announced this week that a deal has been struck between the three parties under which he is obliged to leave the company on March 31 – a three-month extension to the original arrangement.
Great Artesian company secretary Richard Hill said his company requested the extension “in order to preserve its current management arrangements while discussions between Great Artesian and Beach continue”.
Beach continues to deny it is gearing up for a takeover.
OCTOBER: Santos’ CSM takeover plans hit wall
Santos could end up walking away from its second failed takeover bid of 2006, after it was seemingly outflanked by diversified energy company AGL Energy for control of coal seam methane player QGC.
Santos has twice extended its $606 million ($1.26 per share) hostile takeover bid for QGC, which is now due to close at the end of this month.
But now AGL has entered the fray with a $1.44/share (or up to $292 million) offer to secure 27.5% of QGC’s expanded capital, while QGC would buy back up to 12.5% of its expanded capital at $1.44/share.
In another setback for Santos, the Australian Competition Consumer Commission has raised concerns that the proposed takeover could reduce competition in the gas market in Queensland and eastern states.
Hong Kong predator aims to harvest Orchard
CALIFORNIA-focused junior Orchard Petroleum has recommended its shareholders accept Crosby Capital Partners' $175 million (81c/share) takeover offer.
This compares to its initial unsolicited offer of 68c per share announced on October 2.
By mid-December, Crosby's wholly-owned subsidiary Eskdale Petroleum owned 22.91% - including acceptances - of Orchard.
The offer is scheduled to close on January 15.
