Warrego Energy share price rockets 9% as Rinehart doubles down on takeover

The Warrego Energy Ltd (ASX: WGO) share price is roaring higher on Thursday after Hancock Energy – owned by mining magnate and Australia’s richest person Gina Rinehart – upped its takeover bid for the ASX company.

Rinehart has today slapped a 36-cent per share bid on the table. That’s a 28.6% increase on the billionaire’s previous 28-cent offer.

The newly hiked bid follows a 32-cent all-scrip offer from Strike Energy Ltd (ASX: STX) last month, as well as the withdrawal of former suitor Beach Energy Ltd (ASX: BPT) from the takeover race.

Interestingly, however, the market appears to be hopeful the company could go for more than all currently tabled offers.

It has bid the Warrego share price 9.28% higher to trade at 37.7 cents right now.

Furthermore, the stock hit a 52-week high of 38.5 cents earlier today ­– marking an 11.6% surge.

Let’s take a closer look at what’s going on with the ASX energy developer today.

What’s driving the Warrego Energy share price today?

The Warrego share price is soaring higher than all takeover bids put to the company on Thursday. its gains come amid a sixth bid from Rinehart’s Hancock energy.

The latest bid is conditional on the acceptance of 40% of Warrego shareholders. Hancock already has its hands on 25.9% of the ASX company’s stock.

The offer is set to close on 31 January with Hancock lined up to fork out up to $447 million.

And Warrego’s shares aren’t alone in the green. The share price of Strike Energy is also rocketing, gaining 11.94% to trade at 37.5 cents right now.

Though, in a strange twist of events, Strike’s gains could also have something to do with an editing mistake found in a release from Mineral Resources Limited (ASX: MIN).

The AS&P/ASX 200 Index (ASX: XJO) giant announced an off-market takeover bid for Norwest Energy NL (ASX: NWE) yesterday. In its release, however, Strike’s ABN was included in place of Norwest’s, perhaps suggesting it might also be a target.

Mineral Resources is also suspected of being behind a trade wherein 15% of Warrego’s stock swapped hands for 35 cents apiece yesterday, Australian Financial Review reports.

Meanwhile, Hancock believes the Strike share price is being supported by the takeover battle. It’s encouraging Warrego investors not to accept the competing bid lest the value of Strike’s stock falls.

The post Warrego Energy share price rockets 9% as Rinehart doubles down on takeover appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Core Lithium, MMA, Northern Star, and Warrego Energy are charging higher
• These 3 ASX shares have doubled, can they do it again?
• Why Bigtincan, Core Lithium, Pinnacle, and Warrego shares are dropping today
• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today
• Warrego Energy share price slides as Hancock takeover offer trumps Beach

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/TKURQrD