White Energy Company Limited (ASX: WEC, OTCQX: WECFY): Australian Securities and investments Commission has requested that the Company clarify an announcement that the Company made on 7 June 2010 with the headline ‘WEC lodges Bidder Statement, IER deems fair and reasonable’ (the Announcement).
The Announcement referred to the Deloitte Corporate Finance (Deloitte) Independent Expert’s report deeming the Proposed Acquisition fair and reasonable for Non-associated Shareholders.
Deloitte was engaged by the Company as Independent Expert to asses the proposed acquisition of South Australian Coal Limited (SAC) shares (pursuant to the Company’s takeover offer for SAC) from a SAC shareholder who was also a related party of the Company. Deloitte’s report was prepared in connection with the Company seeking the approval of Non-associated Shareholders of the Company under the ASX Listing Rules for the acquisition of those SAC shares.
Accordingly, Deloitte’s assessment that the Proposed Acquisition was fair and reasonable was an asssessment that the acquisition of SAC shares from the related party was fair and reasonable from the perspective of Non-associated Shareholders of the Company. Deloitte did not assess the Offer from the perspective of SAC shareholders and, accordingly, its conclusion should not be taken as concluding that the Offer is fair and reasonable for SAC shareholders.
SAC shareholders will receive a Target’s Statement, incorporating a report prepared by SAC’s Indepedent Expert, BDO Corporate Finance (QLD), which contains an assessment of the Offer from SAC shareholders’ perspective. The Target’s Satement is expected to be lodged with ASIC and filed with the ASX on 15 June 2010.
In the meantime, SAC has made a copy of BDO’s Independent Expert’s Report available on the ‘Shareholder Information’ page on its website (www.sacoal.com.au). BDO separately concludes that the Offer is fair and reasonable from the perspective of SAC shareholders as at the date of the report. Nevertheless, SAC shareholders should read the whole of the Target’s Statement before deciding how to proceed in relation to the offer.