Billionaire Kerry Stokes' Seven Group Holdings has lodged a takeover bid for debt laden oil and gas company Nexus Energy.
The media and industrial services group plans to acquire all shares in Nexus Energy for two cents each, which values the company at $26.6 million.
Nexus has offshore exploration and production assets in the Gippsland Basin, off the south east coast of Victoria, and the Browse Basin off the north west coast of Western Australia.
Seven Group will also replace Nexus Energy's debt, and provide funding for its continuing operations.
Seven Group said it expects to outlay about $400 million on the company in the medium term.
"We believe the proposed acquisition of Nexus Energy is an excellent investment, provided there is an immediate injection of the agreed major capital in the next several weeks," Seven chairman Kerry Stokes said.
"Realisation of the ultimate value of these assets will require substantial capital investment over time."
The proposal also ensures the assets remain in Australian hands, he said.
Nexus has been facing impending debt milestones, which Seven Group said it would be unable to meet without the takeover proposal.
Seven Group shares gained three cents to $8.26, while Nexus shares have been suspended from trade since late February.
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