Mineral Resources Ltd. made an offer to acquire oil and gas producer AWE Ltd. in an all-scrip deal.
Under the deal announced Dec. 11, Mineral Resources is offering 80 Australian cents per share, structured as 1 new Mineral Resources share for every 22.325 AWE shares held.
The transaction, if completed, will result in AWE shareholders owning about 13.1% of the issued share capital of the combined entity.
AWE recommended in a separate, same-day release that its shareholders do not take any action until the board evaluates the proposal as well as a recent takeover offer from China Energy Reserve and Chemical Group Australia.
AWE appointed UBS AG and Highbury Partnership as financial advisers, while Mineral Resources is working with Macquarie Capital on the offer.
Mineral Resources signed a deal in early October to jointly build a commercial synthetic graphite facility with Hazer Group Ltd.
