PERTH (miningweekly.com) – ASX-listed Strike Energy has again made and abandoned a bid for fellow-listed Talon Energy.

Talon in July told shareholders it had been approached by Strike with a non-binding and indicative takeover offer, under which Strike proposed the demerger of Talon’s Mongolian assets to its existing shareholder and the acquisition of Talon by way of a scheme of arrangement.

Under the terms of the unsolicited offer, Talon shareholders would have received 0.4586 Strike shares for every Talon share held.

The offer was subsequently withdrawn.

Talon on Tuesday said that at the tail end of July, Talon had received a revised confidential, non-binding indicative offer from Strike, with the company this time offering 0.4828 Strike shares for every Talon share held, with the deal again structured around the demerger of the Mongolian assets.

Additionally, Strike had offered a convertible working capital facility of up to A$6-million to provide additional liquidity for Talon to fund its medium-term potential capital expenditures.

However, Talon told shareholders that the two companies failed to reach an agreement on the final terms of the takeover, despite "extensive negotiations", and while Talon was prepared to continue negotiations with Strike beyond the resumption of the suitor’s share trading on August 1, the revised proposal was also withdrawn.

Strike on Tuesday confirmed the negotiations, saying the revised offer was withdrawn after an agreement could not be reached following the findings of Strike’s financial and technical due diligence and resultant negotiation of the finance facility.

“Strike’s board of directors has now ceased engagement and will continue to operate the Walyering L23/EP447 joint venture in the normal course of business as part of Strike’s leading Perth Basin exploration, appraisal and development program,” the company said in a statement.