L&M Energy chairman and creditor Geoff Loudon has drawn more than 80 percent acceptances for his takeover offer.
Loudon's New Dawn Energy has acceptance for 80.4 percent of L&M, according to a substantial shareholder notice yesterday. It needs to get to 90 percent to declare the offer unconditional.
The company made its offer in October at 6 Australian cents a share, valuing the target at $A45.3 million, winning the support of L&M's independent directors.
An independent valuation by KordaMentha put the value at between zero and 5.1 Australian cents. New Dawn has offered between 0.004 Australian cents and 5.99 cents for L&M's options.
L&M's dual-listed shares last traded at 5.8 Australian cents and have declined 11 percent this year.
The company holds coal seam gas exploration permits in the South Island, petroleum exploration permits in the Taranaki basin, coal prospecting permits in the North Island and shale gas exploration permits in Southland.
Independent director Trevor Taylor had said there was a relatively low prospect of L&M receiving a superior offer, while noting that the company probably needed to raise more capital next year.
In June, Mr Loudon provided a $5 million bridging loan for the company.
The offer closes on January 11. L&M first listed in January 2007.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Craig expected to seek judge-only High Court review of jury's $1.27m damages decision
- ACC buys high, sells low as Intueri surprises investors with cascade of bad news
- Super Fund suspected window dressing at Milford
- Pumpkin Patch has three weeks to come up with options for bank
- Stonewood Homes liquidation becoming murkier
Most listened to
- Week in Review: a wrap of NBR Radio's top stories, interviews and analysis
- Craig-Williams trial: Otago University defamation specialist on 'Where to from here?"
- Testy exchange over Super Fund evidence
- 'It’s not as big as it was last year but it’s still the biggest game in town' – Paul Maher talks up TVNZ's audience
- Hydroworks CEO Andrew Rodwell on the company's prospects post-funding.