Congratulations to Talon Energy on its Scheme of Arrangement with Strike Energy under which Strike will acquire all issued shares in Talon.

In parallel with the Scheme, Talon will explore options to spin-out Talon’s 33% interest in the Guravantes XXXV Project (Mongolian Project) to Talon shareholders.

On implementation, Talon shareholders will receive 0.4828 new Strike shares for each Talon share held resulting in Talon shareholders owning ~11% of the merged company on a pro-forma basis and potentially shares in SpinCo assuming the successful demerger of the Mongolian Project.

The Scheme Consideration has an implied offer price of A$0.212 per Talon share for Talon’s Perth Basin assets based on Strike Energy’s closing price of $0.440 per share (11 August) representing a 29.3% premium to Talon’s 30 day VWAP.

Talon has appointed Sternship Advisers and RBC Capital Markets as financial advisors and Allens as legal advisor. Strike Energy has appointed DLA Piper as legal advisor.