The Pacific Energy Limited (ASX: PEA) share price has been a stand out performer on the All Ordinaries index on Wednesday.
In afternoon trade the Perth-based power generation project developer's shares have rocketed over 36% higher to a 52-week high of 98.5 cents.
Why has the Pacific Energy share price rocketed higher today?
This morning Pacific Energy's shares returned from their trading halt with a bang after announcing the receipt of a takeover approach.
According to the release, the company has entered into a scheme implementation deed with QGIF Swan Bidco, a subsidiary of funds managed or advised by QIC Private Capital, to acquire Pacific Energy by way of scheme of arrangement.
The release advises that QIC has offered $0.975 per share in cash, comprising $0.96 per share to be paid by QIC and a final $0.015 per share fully franked dividend intended to be paid by Pacific Energy.
This offer is a 35.4% premium to its last close price and a 43.6% premium to the volume weighted average price for its shares over the last 30 days. It values Pacific Energy at $422 million and gives it an implied enterprise value of $487 million.
The Pacific Energy board appears to be happy with the offer, revealing that they "unanimously recommend the Scheme and have each confirmed that they intend to vote all of the Pacific Energy shares they hold or control in favour of the Scheme, in each case in the absence of a superior proposal and subject to an Independent Expert concluding that the Scheme is in the best interest of Pacific Energy shareholders."
Pacific Energy's chairman, Cliff Lawrenson, explained: "The Board of Pacific Energy considers the proposal from QIC represents an opportunity for shareholders to realise compelling and certain value for Pacific Energy shares. The proposal delivers a significant premium for shareholders and recognises the position Pacific Energy has built as the leading Build-Own-Operate power supplier to the mining industry and remote townships in Western Australia as well as the emerging opportunities from our growing east coast presence through Pacific Energy Victorian Hydro and NovaPower."
This view was echoed by the company's CEO and Managing Director, James Cullen.
He said: "We are delighted that QIC has chosen Pacific Energy as its platform for growth in our existing markets and beyond. We look forward to continuing to deliver reliable, best-in-class power solutions for our customers under the ownership of QIC and leveraging our high standards, quality and culture with the support of QIC to expand our reach to new markets."
Elsewhere on the local share market today, the Strike Energy Ltd (ASX: STX) share price has zoomed 41% higher after providing a very positive update on its West Erregulla site.
