WestSide Corp. (WCL), an Australian coal- seam gas explorer, said it received a A$165 million ($178 million) takeover offer from Liquefied Natural Gas Ltd., which plans to export the fuel from Queensland state.
The cash offer of 65 Australian cents a share “involved financial backing from reputable international parties,” Brisbane-based WestSide said in a statement today. That’s 91 percent higher than the 34 cents the stock traded at before the proposal was announced Feb. 13, without identifying the bidder. WestSide rose 2.3 percent to close at 45 cents in Sydney today.
“The board of WestSide continues to assess the indicative proposal alongside other strategic options available to the company,” the explorer said. “The board has not formed a view at this stage as to the merits of the indicative proposal.”
WestSide operates fields in Queensland about 160 kilometers (100 miles) west of Gladstone, where BG Group Plc (BG/), ConocoPhillips (COP) and Santos Ltd. (STO) are building more than $50 billion of liquefied natural gas projects. Perth-based LNG Ltd. (LNG) plans a smaller LNG plant at the port of Gladstone.
A unit of China National Petroleum Corp. in January 2011 agreed to buy an almost 20 percent stake in LNG Ltd. to gain access to the company’s technology. LNG Ltd. rose 10 percent to 43 cents a share today, valuing the company at A$115.1 million.
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