beach energy, page-30

Seven Group’s Beach Energy bids for Warrego Energy (copyright link) - AFR

Snippets below:

Seven Group-backed Beach Energy has made its first material M&A move in five years, joining the bidding war for Perth Basin play Warrego Energy. Beach Energy, with no bankers in tow, has lobbed a 20¢ a share indicative and non-binding offer, valuing Warrego’s equity at close to $250 million....

...The view among analysts is that Beach has been somewhat constrained in chasing deals by its major shareholder Seven Group, which owns a 30 per cent stake and keeps a close eye on the company.

Beach was in a $38 million net cash position at September 30, according to its quarterly report released last month, and had undrawn facilities worth $490 million. Analysts expect it to report $1.77 billion revenue and $1.16 billion EBITDA in the 2023 financial year which, combined with its balance sheet position, means it shouldn’t have too much trouble swallowing Warrego should it get to that point....

...Strike, the company’s 50 per cent partner in the West Erregulla project and long-time mooted merger buddy, is sitting on an 8.2 per cent pre-bid stake. Fund managers reckon the pair have a unique relationship, working together well at a project level but not always seeing eye to eye on corporate matters.

Working well together at a project level? News to me

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