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Drillsearch agrees to A$384 mln bid from Beach Energy

Published 23/10/2015, 09:46 am
© Reuters.  Drillsearch agrees to A$384 mln bid from Beach Energy

MELBOURNE, Oct 23 (Reuters) - Australian oil and gas explorer Drillsearch Ltd DLS.AX has agreed to a takeover offer worth A$384 million ($277 million)from bigger rival Beach Energy BPT.AX , the two companies said on Friday.

Beach Energy offered 1.25 of its shares for each Drillsearch share, valuing the target at A$0.83 per share, which was a 27 percent premium to Drillsearch's close on Thursday.

"The Boards of both Drillsearch and Beach believe this is a logical combination of two complementary, overlapping businesses, with the opportunity to generate significant value for shareholders of both companies," the two companies said in a statement to the Australian stock exchange.

The merger marks the latest in a spate of oil and gas takeover offers in Australia, including a A$7.1 billion bid rejected by Santos Ltd STO.AX on Thursday. ($1 = 1.3862 Australian dollars)

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