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)