Australian energy company AWE has knocked back a takeover bid from a private equity firm, labelling the offer "opportunistic" and below fair value.
The oil and gas producer, established in 1997, informed the local market on Wednesday that private equity firm Lone Star Funds's Japan branch had attempted to buy out AWE for A$0.80 per share.
The proposal was unsolicited, non-binding, indicative and conditional, AWE said.
"The AWE Board has met to consider the proposal and has decided to reject it," the company said in a statement.
"The Board concluded that it is opportunistic and does not reflect the fair underlying asset value of the company."
AWE, which is based in Sydney and has main producing assets in Tasmania, Victoria and Western Australia, explores, develops and produces oil and gas in five countries.
The company also installed a new managing director, David Biggs, at the beginning of May.
Its share price performed strongly on Wednesday, lifting 10.5 cents, or 17.1 per cent, to A$0.72 at 1158 AEST.
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