L&M Energy's Loudon exceeds 80% acceptance in takeover offer

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

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.

(BusinessDesk)


This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7487 0.0001 0.01%
AUD 0.9619 0.0001 0.01%
EUR 0.6788 0.0000 0.00%
GBP 0.4912 0.0001 0.02%
HKD 5.8076 -0.0002 -0.00%
JPY 89.8940 -0.0110 -0.01%

Commods

Commodity Price Change Time
Gold Index 1198.1 -2.780 2015-03-05T00:
Oil Brent 61.0 -0.250 2015-03-05T00:
Oil Nymex 52.5 1.050 2015-03-05T00:
Silver Index 16.1 0.000 2015-03-05T00:

Indices

Symbol Open High Last %
NZX 50 5856.8 5882.4 5856.8 0.41%
NASDAQ 4979.9 4993.5 4967.1 0.32%
DAX 11427.6 11532.8 11390.4 1.00%
DJI 18096.9 18160.3 18096.9 0.21%
FTSE 6919.2 6968.6 6919.2 0.61%
HKSE 24274.9 24393.8 24465.4 -1.11%
NI225 18814.8 18846.7 18751.8 0.50%