SYDNEY May 5 Australian gas firm WestSide Corp
Ltd on Monday rejected as undervalued a takeover offer
from China's diversified energy company Landbridge Group Co Ltd
that valued the company at A$177.6 million ($164.52 million).
Landbridge, based in Shandong, China, launched the bid for
the Queensland-based coal seam gas company to gain entry into
northern Australia's fast-growing gas industry. It currently
owns a 3.2 percent stake in WestSide.
WestSide said the proposal, which has already been increased
to A$0.40 per share a week ago from A$0.36, did not represent
fair value as it did not take into account recently announced
gas sale deal with a consortium including Santos Ltd,
Total SA and Korea Gas Corp (KOGAS)
The gas sale agreement could generate over A$110 million in
annual revenue to WestSide at the maximum production rate, the
company added. It recommended shareholders reject the Landbridge
WestSide owns the Meridien CSG field in Queensland state,
where three large liquified natural gas (LNG) projects are being
built and are due to begin operating over the next two years.
WestSide shares gained 1.3 percent to A$0.38, against a 0.1
percent slip in the broader market
($1 = 1.0795 Australian Dollars)
(Reporting by Maggie Lu Yueyang; Editing by Miral Fahmy)