Probably the best reason not to accept the MIN bad takeover offer.
MIN require NWE APPROVAL to develop Lockyer Deep Gas Permit.
FROM NWE Target statement.
Further, your Directors believe that MinRes may be able to derive unique value from consolidating ownership of the EP 368 and EP 426 permits given that:
Consolidation of these projects by MinRes would ensure that it can make decisions in regards to the development of the Lockyer project in its absolute discretion and for its sole benefit. Currently, the joint operating agreements applicable to the EP 368 and EP 426 joint ventures provide Norwest with a high degree of protection and control as a result of: the "65% and minimum two parties" voting threshold required for the majority of decisions under the applicable joint operating agreements; and the fact that to progress towards production, the joint venture parties must unanimously agree the establishment of a production venture and may also need to agree each party's share of net equity gas via a unitisation process (noting that the Lockyer discovery may extend across two permits with different equity interest percentages).
MinRes is an end-user of gas in its other business units such that the Directors believe that MinRes stands to benefit considerably if it is able to consolidate ownership of Norwest’s assets and secure full control of project development and gas marketing against a backdrop of increasing Western Australian domestic gas prices, the possibility for gas export as LNG, and the creation of new downstream industries.
