Court orders shareholders meet to vote on Dart Energy, IGas merger

By Romel S. Gurky

The Supreme Court of Queensland in Australia has ordered that a meeting of shareholders of ASX-listed Dart Energy Limited be convened to vote on the proposed acquisition of the company by London-listed IGas Energy Plc.

The shareholders meeting will be held on September 1, 2014, Dart Energy said in a statement Wednesday. Completion of the acquisition is anticipated to occur around the end of September.

Dart and IGas signed in May an agreement for the proposed US$198 million acquisition in a merger that would create a leading UK oil and gas company.

IGas produces around 3000 barrels of oil & gas equivalent per day from 110 sites around the UK, including conventional and coal-bed methane production along with a number of shale exploration prospects.

Dart Energy holds 24 licenses in the UK for shale and coal-bed methane along with non-core licenses in Australia, Germany, Belgium, Indonesia and India. The company has interest in four CBM blocks in Indonesia, two in Kalimantan (Bontang Bengalon PSC, 100%, Sangatta West PSC , 24%) and two in South Sumatra (Muralim PSC, 50%, and Muara Enim PSC, 45%).

Under the proposed acquisition scheme, Dart shareholders will receive 0.08117 IGas shares for each Dart share, equivalent to A$0.1898 per Dart share based on the A$:? exchange rate and closing share price of IGas on 8 May 2014, and will hold approximately 30.5 percent of the enlarged company on a fully diluted basis.

The Dart Energy statement on Wednesday added Deloitte Corporate Finance Pty Limited as independent expert has concluded that the proposed acquisition scheme is fair and reasonable and in the best interests of Dart shareholders. The Independent Expert has assessed the full underlying value of Dart at between A$0.15 and A$0.19 per Dart share.

Dart's directors unanimously recommend that shareholders vote in favour of the acquisition scheme, in the absence of a superior proposal.

Editing by Reiner Simanjuntak