This article is 15 years old. Images might not display.
The two investors will back the acquisition through share placements to raise $8.1 million. They also will underwrite a $56.3 million one-for-one entitlement offer of new ordinary shares to existing shareholders.
The funding and underwriting package should result in New Hope making a total investment of $23.3 million for a 19.9% stake in WestSide. Infrastructure Capital is expected to hold at least 13.5% from a $15.8 million investment.
The ultimate ownership interests may vary depending on the allocation of any shortfall in subscriptions under the entitlement offer.
The two companies also will be invited to nominate one representative each to join the board of WestSide as non-executive directors.
Last month, WestSide announced it would form a joint venture with Mitsui E&P for the acquisition of the Dawson Seamgas coal seam gas fields. The company will pay Anglo Coal $26.8 million for its 51% stake in PL 94, which holds Dawson Seamgas.
The Dawson Seamgas fields contain a range of CSG assets, including a petroleum lease, gas rights in mining leases and gas pipeline infrastructure connection to the main Queensland commercial network.
WestSide CEO Angus Karoll welcomed the involvement of New Hope and Infrastructure Group.
He said these companies had established track records as long-time investors in the CSG industry through their support of Arrow Energy and Queensland Gas Company.
“Their investment in WestSide therefore marks a significant vote of confidence in WestSide’s acquisition of Anglo American’s stake in the Dawson Seamgas CSG fields and our growth strategy,” Karoll said.
