Coal-seam gas explorer L&M Energy has been given shareholder approval to take over the interests of its private sister company L&M Coal Seam Gas in a cashless merger creating 500 million new shares in L&M Energy (LME).
About 94% of shareholders voted in favour of the takeover at a special general meeting in Wellington on Monday.
LME shares had dipped slightly but have been steady around 15c since the acquisition was agreed to by shareholders.
The takeover brings together 12 exploration permits, for coal-bed methane gas exploration, covering almost 13,000sq km, with the area with the most potential in Southland, near Ohai, where there is an estimated 173 petajoules of energy from coal-seam gas.
During an investor road show in Dunedin a fortnight ago, LME chief executive John Bay said the company might shortly seek to raise capital of up to $10 million, which would be used to finance an expanded test-drilling work programme in the year ahead.
LME, with 675.3 million shares on issue, is now majority owned by three major shareholders: Swiss company Tangent International, Hong Kong company Campania Holdings and Geoff Loudon (L&M Group chairman), who collectively have an 82.8% share, the balance being held by small shareholders.
