Central Petroleum Said to Have Accepted New Macquarie Offer

As had already been reported on this website, Macquarie was said to be making a new offer to Central Energy after its 17.5c per share offer was rejected.

Market sources now indicate that Central Energy has accepted the new offer with limited other capitalisation options, specially as Macquarie is Centrals main financier. Furthermore, Macquarie also owns half of the Mereenie Oil & Gas field which it purchased from Santos. The new offer is said to be 20c per share, a 14% increase from the previous offer.

Key Attributes;

  • Central Energy has accepted Macquarie’s new bid of 20c per share
  • A part of the offer entails a note which Reuters (via AFR) reports will be $150,000 per every bcf of gas within the initial 4 years of the transaction
  • New acquisition will pave the way for Macquarie to be a notable player in the tight east coast market
  • The purchaser is Macquarie’s Commodities & Global Markets division as opposed to its traditional Investment Banking arm – Macquarie Capital

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