Brisbane-based Armour Energy on Wednesday advised its shareholders to reject a takeover offer by CSG producer Westside Corporation.
“The Board of Armour unanimously recommends that shareholders reject the opportunistic and inadequate Westside offer as it significantly undervalues the company both in terms of its existing assets, and the potential value the company expects to deliver to its shareholders in the near future,” the company said in a statement.
WestSide, which is owned by China’s Landbridge Group recently proposed an unsolisited takeover bid of Armour Energy comprising of a $0.12 per share offer.
Executive Chairman of Armour Energy, Nicholas Mather said: “The offer does not reflect the current or potential value of Armour’s assets and comes at a time when the company is in the process of decisively rebuilding its business and in the context of increasing demand for gas in Australia.”
Image: Armour Energy