Potentially here is your answer 2217 GMT -- The 41% premium paid...

Potentially here is your answer

2217 GMT -- The 41% premium paid by Mineral Resources Ltd. (MIN.AU) for a 19% stake in Western Australia-focused Empire Oil & Gas NL (EGO.AU) may indicate a competitive process, says Canaccord Genuity, which weighs its meaning for AWE Ltd. (AWE.AU). "We would normally associate a 41% premium with a change of control event rather than the acquisition of a strategic stake in a company," the broker says. The price paid by Mineral Resources equates to 2.60 Australian dollars ($1.92) a gigajoule, based on Empire's current proven and probable reserves of 20.5 petajoules. "Applying this multiple to our AWE valuation would yield A$1.47/share versus our price target of A$1.00/share," Canaccord says. Empire's assets are in the Perth Basin of Western Australia. Origin Energy Ltd. (ORG.AU) is looking to sell its 50% stake in a JV with AWE, and the outcome of that process will provide a new benchmark for what assets in the area are worth. AWE last traded at A$0.86. ([email protected]; @dwinningWSJ)
(END) Dow Jones Newswires
June 15, 2016 18:17 ET (22:17 GMT)