L and M offer passes 90 percent hurdle

The offer for L&M Energy from its chairman and creditor Geoff Loudon is now unconditional, having been accepted by more than 90 percent of shareholders, allowing compulsory acquisition of remaining shares.

Loudon’s New Dawn Energy has acceptance for 90.25 percent of L&M by Jan. 15 and so it will move to compulsorily acquire remaining shares under the Takeovers Code. The offer is open until Jan. 31.

The company made its offer in October at 6 Australian cents a share, valuing the target at A$45.3 million, winning the support of L&M’s independent directors. An independent valuation by KordaMentha put the value at between zero and 5.1 Australian cents. New Dawn has offered between 0.004 Australian cents and 5.99 cents for L&M’s options.

The company holds coal seam gas exploration permits in the South Island, petroleum exploration permits in the Taranaki basin, coal prospecting permits in the North Island, and shale gas exploration permits in Southland.