1ASX/MEDIA RELEASE10 November 2022Receipt of Non-Binding and Indicative ProposalWarrego Energy Limited (“Warrego”, ASX:WGO) notes recent increased trading activity in its shares andadvises that it received a non-binding and indicative proposal from Strike Energy Limited (“Strike”) underwhich Strike would acquire all of the shares in Warrego that it does not already own via a scheme ofarrangement (the “Proposal”).Under the Proposal, Warrego shareholders would receive:• 0.775 new Strike shares for each Warrego share held; and• if Warrego's Spanish assets are sold, and such sale completes, within 12 months ofimplementation of the scheme, additional scheme consideration described below.Under this Proposal, Warrego shareholders would own approximately 30.5% of the combined group.Warrego would have the right to appoint one Board member to the Board of the combined group.Contingent scheme consideration if a sale of the Spanish Assets is completed within 12 monthsAs part of the Proposal, Strike is required to use reasonable endeavours to market and sell the Spanishassets. If those assets are sold, and such sale is completed, within 12 months following implementationof the scheme, Strike will be required to pay, as additional consideration for the Warrego sharestransferred under the scheme, the net proceeds of sale of the Spanish assets (net of all taxes andcosts). Any such consideration would be in addition to the scrip consideration to be provided by Strikefor Warrego shares under the scheme.
WGO Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
