23 Oct 2012

Takeover bid for energy company

12:13 pm on 23 October 2012

L&M Energy of Wellington has received a full takeover bid from one of its major investors.

New Dawn Energy is offering 6 Australian cents per share for the oil and gas explorer.

L&M Energy is controlled by three major shareholders, who hold 69% of the company.

Director Geoff Loudon, who has a 23% stake in L&M Energy, says the company will shortly need more capital, and the other major investors are keen to get out.

He says his offer is a 43% premium to L&M Energy's closing share price in Australia last Wednesday and values the company at $A45 million.

Some 71.71% of the shareholders have accepted the bid, unless a higher one is received.

New Dawn needs 90% of the shares to take L&M Energy private.

L&M Energy's shares have since risen 2.1 NZ cents to 7.5 NZ cents each.