$177 M Takeover Bid for Australia’s WestSide Corp Heats Up; Shares Jump 50%

An undisclosed company has offered a A$165 million ($177 million)takeover bid to WestSide Corporation, one of many coal-seam gas (CSG) exploration companies in Australia's Queensland state, effectively prompting shares of the company to jack up on Tuesday.

WestSide shares grew 17 cents, or 50 per cent, at 51 cents at 1324 AEDT after reaching an earlier high of 54 cents, ninemsn reported.

In a statement, WestSide said the tendered indicative and highly conditional proposal was equivalent to A$0.65 per WestSide share, or at least 91 per cent more than its closing price of 34 cents on Feb. 10. WestSide currently has 254.19 million shares on issue.

"The Board of WestSide has not formed a view, at this stage, as to the merits of the Indicative Proposal and there is no guarantee that any formal, binding proposal will be received," the Australian mining explorer said in a statement.

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"We do recognize it is a significant premium," Angus Karoll, WestSide Chairman, said in Bloomberg News. "We'll act in the best interests of all shareholders and work proactively with the company that made the bid to get the best outcome."

The Board intends to continue to assess the Indicative Proposal alongside other strategic options available to the Company, its company statement noted.

WestSide operates the Meridian SeamGas CSG fields west of Gladstone in Queensland's coal-rich Bowen Basin. WestSide holds a 51 per cent interest, with Mitsui E&P Australia Pty Ltd holding the remaining 49 per cent.

It also holds 25.5 per cent joint venture interests with QGC and Mitsui E&P Australia in other CSG projects with exploration and appraisal programs currently underway at the Paranui, Tilbrook and Mount Saint Martin pilots in Queensland's Bowen Basin.

The Company is also currently working to prove-up CSG resources in its other tenements. These tenements have the geographical advantage of being located adjacent to producing gas fields and pipelines and close to the burgeoning industrial cities of Gladstone, Rockhampton and Townsville.

WestSide has hired Moelis & Company as financial adviser and Allens Arthur Robinson as legal adviser, the company said in the statement, and will make further announcements in due course.

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