Sunbird Energy Ltd., Perth, has received a nonbinding takeover proposal from South African company Glendal Power & Industries.
The proposal of 18¢/share values Sunbird at $25 million (Aus.) which is a 50% premium to the company’s recent trading price.
The proposal is subject to many conditions, including due diligence, third-party financing arrangements, and Glendal achieving a minimum interest of 51% of Sunbird shares.
Glendal is a South African power company involved with southern African coal-fired power, solar power, and gas infrastructure development.
Sunbird owns 76% interest in the 540-bcf Ibhubesi gas project off South Africa that proposes to supply feedstock to the Ankerlig gas-fired power project from the offshore field in the Orange basin.
Sunbird also has the surrounding exploration permit that is estimated to have several trillion cubic feet of gas exploration potential. The company also has some coal seam gas permits onshore South Africa.