Ashurst has advised Drillsearch Energy Limited (Drillsearch) in its A$41.6 million takeover bid for Ambassador Oil and Gas Limited (Ambassador), announced on 28 May 2014.

Drillsearch entered into a Bid Implementation Agreement with Ambassador under which Drillsearch agreed to make a conditional, off-market takeover bid for all shares in Ambassador it does not already own. Ambassador shareholders will be offered one Drillsearch share for every 5.4 Ambassador shares or an implied offer price of $0.293 per Ambassador share. The implied offer price represents a 51% premium to Ambassador's three-month volume weight average price of $0.193.

 The directors of Ambassador have resolved to recommend shareholders accept the offer, in the absence of a superior proposal.

Simultaneously with the announcement of the takeover bid, Drillsearch stated it had acquired a relevant interest in 19.9% of Ambassador by entering into acquisition agreements with a number of Ambassador shareholders.

Ashurst lead partner on this matter Bill Koeck explains: "There is a compelling strategic rationale for the transaction, as it consolidates Drillsearch's dominant position in the Northern Cooper Wet Gas Fairway."

Bill was supported by senior associate Anton Harris and lawyers Scott Lai and Frank Jin (Corporate). Partner Steve Smith and senior associate Emma Malone (Banking) also assisted.