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UIL independent expert deems Strike takeover ‘fair and reasonable’

Source: Energy News Bulletin | 13 November 2018

STRIKE Energy’s off-market tilt at UIL Energy has been deemed ‘fair and reasonable’ by the Independent Expert appointed by UIL and has subsequently completed the Target’s Statement for the all-scrip takeover offer.

Following the completion of the Target’s Statement and the independent expert’s judgement that the transaction is fair and reasonable, UIL directors have again urged shareholders to accept the offer and will now accept the offer for their own holdings. UIL’s board of directors hold around 25% of the company’s ordinary shares, which immediately takes the total acceptances of the offer to more than 30%. Strike announced an offer to shareholders of 0.485 strike shares for every UIL share.

BDO Corporate Finance and RISC were appointed by UIL as the independent experts to advise on the takeover offer. Adjusting for portfolio effects, RISC estimates a value range for the UIL assets of between A$6.8 million and A$24 million. A best estimate value from arithmetic addition of the portfolio is A$12.8 million.

The Independent Expert has assessed the fair market value of UIL Energy shares in the range of $0.0302 to $0.0981 per share with a best estimate of $0.0542 per share on a controlling interest basis, and has concluded that Strike’s offer is fair and reasonable, in the absence of a superior proposal.

The Independent Expert has assessed the fair market value of UIL Energy shares in the range of $0.0302 to $0.0981 per share with a best estimate of $0.0542 per share on a controlling interest basis, and has concluded that Strike’s offer is fair and reasonable, in the absence of a superior proposal.

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