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Strike acquires Talon shares

Blue Energy 7 million

Talon Energy has announced that the Federal Court of Australia has made orders approving the scheme of arrangement between Talon and Talon shareholders.

Under this arrangement, Strike Energy will acquire all the shares in Talon for consideration of 0.4828 new Strike shares for every one Talon Share held by Talon shareholders.

Talon intends to lodge an office copy of the court orders with the Australian Securities and Investments Commission (ASIC) on Thursday, 14 December 2023, at which time the scheme will become legally effective.

If this occurs, Talon expects that Talon Shares will be suspended from trading on ASX at close of trading on Thursday, 14 December 2023.

On 17 August 2023, Strike and Talon had entered a binding scheme implementation deed under which Strike would acquire all the issued shares in Talon by way of a scheme of arrangement.

The implied offer price of A$0.2122 for Talon’s Perth Basin business alone is an approximate 21 per cent premium to Talon’s closing share price as at 11 August 20233 , excluding any additional value that may be realised for Talon shareholders via the potential demerger of Talon’s Mongolian assets.

Strike shareholders will own approximately 89 per cent and Talon shareholders will own approximately 11 per cent of all issued Strike shares upon implementation of the scheme.

Strike has agreed to provide Talon with a $6 million interim convertible funding facility to fund Talon’s capital requirements through the scheme process.

The acquisition will generate material corporate and operational synergies with the capacity to generate an initial annualised revenue in excess of $82 million from the Walyering gas field alone.

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