Compulsory acquisition of methane gas explorer L&M Energy
has been triggered, takeover instigator LME chairman Geoff
Loudon yesterday attaining 90% of shareholder acceptances, a
condition of his almost $13 million offer.
Mr Loudon's company New Dawn Energy is paying a 43% premium
to shareholders at A6c ($NZ7.6c) per share, and now
compulsorily acquires the outstanding 10% of shares and will
delist LME from the New Zealand and Australian stock
The initial 30-day offer was recently extended to January 31,
but at the time the extension was made Mr Loudon held 89.3%
of shares on issue. The takeover price values LME at $56.7
million. LME has undertaken extensive exploration of coal-bed
methane gas in South Otago and Southland, without announcing
any commercially viable deposits. It is now also considering
an onshore drilling programme in Taranaki.
• New Dawn was incorporated with the Companies Office in
September last year. Its directors are Mr Loudon and Greg
Hogan. Mr Loudon holds 100% of the shares.