CERCG Aus Gas has decided not to proceed with the acquisition of Australian exploration and production company AWE.

The company has withdrawn its previously announced takeover offer to acquire 100% of the shares in AWE for cash consideration of $0.73 per share.

Earlier this month, AWE’s board of directors recommended shareholders to not accept the offer made by CERCG.

The board favoured the takeover bid made by Mitsui, which offered to acquire 100% of the shares in AWE for $0.95 per share last month.

The offer price quoted by Mitsui valued AWE at a market capitalisation of A$602m ($471.29m).

Following the offer, AWE gave an opportunity to Mineral Resources (MinRes) to match the proposal received from Mitsui.

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However, MinRes did not match Mitsui’s proposal within the stipulated time.

“The board favoured the takeover bid made by Mitsui, which offered to acquire 100% of the shares in AWE for $0.95 per share last month.”

Founded in 1997, AWE has a portfolio of production, development and exploration assets in Australia, Indonesia and New Zealand.

In the face of a low oil price environment, the company intends to focus on gas in order to strengthen Australian domestic gas markets.

The onshore portfolio of the company includes Perth Basin assets and the Waitsia gas project.

The Perth Basin gas fields are located near Dongara around 360km north of Perth in Western Australia.

AWE operates the Waitsia gas project through a 50:50 joint venture (JV) with Origin Energy.

The company is engaged in the development of the second stage of the Waitsia project in an attempt to achieve production of 100TJ/d of gas for at least ten years.