Beach Energy Increases Bid for Impress Energy

Oil and gas explorer, developer and producer, Beach Energy (ASX:BPT) has increased their bid for Impress Energy (ASX:ITC). In the takeover offer, Beach have increased their bid from 8.25 cents to 8.5 cents per share, valuing Impress Energy at $75.3 million while also declaring the on-market offer as unconditional. The takeover deal would add significant financial strength to its business and accelerate the development of Impress assets in the Cooper Basin.

The increased deal offer follows an announcement that Beach stakeholder Victoria Petroleum NL intended to vote against the scheme of arrangement. Victoria Petroleum currently holds a 20 per cent stake in Beach. Beach Energy currently owns about 19.9 per cent of Impress, just a little less than major shareholder Victoria Petroleum NL.

In a statement, Beach managing director Reg Nelson said: "We believe VicPet’s recent actions do not deliver the best outcome for Impress shareholders and the on-market cash offer proposed by Beach is the best way for Impress shareholders to realise the value of their investment. By making this offer, Beach is extending an opportunity for all Impress shareholders to have access to a slightly improved financial return than they would have enjoyed if the scheme were to have succeeded."

Beach and Impress agreed to terminate their merger implementation agreement on December 5, Beach said in a statement. The original agreement was entered into on November 22.

Beach Energy is aiming to double production and reserves in the next two to five years. Beach Energy booked a net loss of $33.1 million in the year to 30 June.