Australia’s Central Petroleum rejects Macquarie’s $57m offer


Australian onshore oil and gas company Central Petroleum has rejected a takeover proposal from its main financier, Macquarie Group.

It is, however, open for higher offers.

The offer of global investment banking and diversified financial services organisation Macquarie Group has valued the oil and gas company at $57m.

The oil and gas company also expressed its hope that Macquarie would return with a better offer, reported Reuters.

"The board of directors of the company has determined that the proposal is not in the best interests of shareholders."

Central Petroleum was quoted by the news agency as saying to the Australian Stock Exchange: “The board of directors of the company has determined that the proposal is not in the best interests of shareholders.”

It also stated that Central Petroleum will provide Macquarie Group access to its books to give the latter an opportunity to relook into the offer.

Macquarie Group currently owns 2.3% of Central Petroleum, a company which concentrates on producing gas from the onshore fields located in the Northern Territory.

It operates the conventional Mereenie, Palm Valley and Dingo fields, reported Upstreamonline.com.

The company plans to meet the gas demand in the eastern part of Australia.