Warrego Energy has entered into a Scheme Implementation Deed ("SID") with Beach Energy under which Beach has agreed to acquire all the issued shares in Warrego by way of scheme of arrangement.

Under the Scheme, Warrego shareholders would receive:

• Cash consideration of $0.20 per share (the "Base Scheme Consideration"); and
• If Warrego's Spanish assets are sold, and such sale completes, within 12 months of implementation of the Scheme, the proceeds of such sale net of costs and taxes.

Recommendation

The Board of Warrego (Board) unanimously recommends that Warrego shareholders vote in favour of the Scheme, in the absence of a Superior Proposal and subject to an Independent Expert concluding, and continuing to conclude, that the Scheme is in the best interests of Warrego shareholders. Subject to those same qualifications, each Warrego Director has confirmed that they intend to vote any shares that they hold or control in favour of the Scheme.

Commenting on the Proposed Acquisition, Warrego Managing Director and CEO Dennis Donald said:
“This transaction provides an attractive outcome for our shareholders, with the certainty of cash proceeds. The premium offered to our share price recognises the strong underlying value of our assets as well as providing the ability to realise further upside from the future potential sale of Warrego’s assets in Spain”.

KeyFacts Energy: Beach Energy Australia country profile