By Ross Kelly
SYDNEY--In a rare example of a Chinese company turning hostile
with a takeover attempt, Shandong-based Landbridge Group Co.
pitched a 159.8 million Australian dollars (US$144.6 million) offer
for Westside Corp. (WCL.AU) direct to the energy producer's
shareholders.
Closely held Landbridge has offered 36 Australian cents per
Westside share, a 38% premium to their closing price Friday of 26
cents, according to a statement from Landbridge posted on the
Australian Securities Exchange.
Shandong-based Landbridge, which owns a port in China along with
refinery and real-estate assets, said it approached Westside with
an offer last month, but the Australian company rejected its
request to scrutinize its books.
The offer provides certainty for Westside shareholders concerned
the company may struggle to fund gas field developments, Landbridge
Chairman Ye Cheng said in the statement.
Westside owns coal seam gas fields in Queensland state, where
three large export projects being built by rivals are due to become
operational over the next two years. Analysts fear some of the
projects may face a shortage of gas from the Bowen Basin
coalfields, forcing them to source supplies for other producers in
the area. Westside's assets are in areas typically considered to
have lower quality resources than so-called "sweet spots" in the
nearby Surat Basin.
In May last year, Westside said PetroChina Co. (PTR) had
withdrawn a A$185.1 million bid because "the general situation in
Australia has changed so much". No further explanation was given
for the decision, which came as all three export projects
experienced cost blowouts due to a high Australian dollar,
technical difficulties and labor shortages.
PetroChina also owns coal seam gas assets in the Bowen Basin
through a joint venture with Royal Dutch Shell PLC (RDSB). The
venture hasn't decided whether to build its own export project.
Write to Ross Kelly at ross.kelly@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires