L&M Energy prepares formal share offer
The formal offer for the takeover of L&M Energy by its chairman will be given within 10 days.
L&M chairman Geoff Loudon last month wrote to shareholders saying he wanted to take the company back into private ownership.
The company was floated on the NZX back in 2007 with a A$20 million (NZ$23m) issue of 23-cent shares.
It reached a high of 35 cents that year, before falling away. Another boost in 2008 saw shares reach 25 cents, but since then the price has slipped downward. Yesterday it was unchanged at 7 cents.
Loudon has signalled his offer, through newly-formed company New Dawn Energy, will be at A6 cents a share which was a 43 per cent premium on the price before the announcement.
Yesterday, L&M Energy told the NZX the record date for the takeover was today.
Under the Takeovers Code, Loudon's formal offer must be made within 10 days of the record date. An independent advisers' report will be published and a statement made by L&M following the offer.
Loudon has said his bid to buy the rest of the oil and gas exploration firm - he owns 28 per cent and has secured buy-in from large shareholders giving him about 71 per cent control - was the only realistic option to fund the business with limited access to capital and dwindling cash reserves.
L&M company secretary Bruce McGregor said investors needing to update their address should contact Computershare New Zealand.