New Dawn launches bid for L&M Energy

JASON KRUPP
Last updated 10:16 23/10/2012

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New Dawn Energy has launched a full takeover bid for Wellington-based gas and exploration firm L&M Energy (LME).

The bidder is offering to pay shareholders 6 Australian cents per share for the dual-listed New Zealand and Australian listed firm.

That represents a 43 per cent premium on LME's last trading price on the ASX of A4.2c. The New Zealand shares last traded at 5.4c a piece.

The stock trades infrequently, and has experienced a steady decline from its A9.8c 12-month peak seen in March.

The deal is conditional on New Dawn achieving a 90 per cent take up from shareholders, which would trigger a full buyout of minorities under New Zealand takeover rules.

LME chairman Geoff Loudon and director Greg Hogan also serve as directors of New Dawn Energy, and will sit out on the takeover process.

New Dawn Energy was only incorporated at the end of September and appears to have been set up to acquire LME. It is wholly owned by Loudon, who also owns a 28 per cent stake in L&M Energy.

The target firm is urging shareholders to take no action at this stage while it forms an independent sub-committee to assess the deal.

Adelaide Equity Partners has been appointed as corporate adviser and Kensington Swan and Piper Alderman as legal advisers.

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- BusinessDay.co.nz

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