Transerv blindsided by Origin's spin-out plans

Shares in oil and gas explorer Transerv Energy tumbled today as managing director Stephen Keenihan announced his resignation in the wake of news yesterday that the company’s proposal to acquire assets owned by Origin Energy had been terminated.

Perth-based Transerv told the market that Origin’s plans to place several assets, including its Perth Basin portfolio, into spin-out company Lattice Energy and list it by way of an IPO were done without consultation.

Transerv had recently placed a bid for Origin’s Perth Basin assets.

“Transerv, Argonaut and its funding partners have worked diligently and in good faith during the sale process for the assets and presented a competitive, fully funded bid,” the company said in a statement.

“Despite the bid meeting the prescribed requirements outlined by UBS, Origin has decided to take an alternate path.

“Transerv was disappointed to read in the press that the sale of the assets had been terminated in favour of Origin listing the assets in an IPO.”

Transerv shares closed 35.7 per cent lower to 0.9 cents each.

The company’s co-founder and managing director, Mr Keenihan, also announced today he would be resigning from his position but would continue as a director and adviser, while chief financial officer Jo-Ann Long has also tendered her resignation and will be leaving at the end of the year.

The role of managing director left vacant by Mr Keenihan will be filled by David Messina, who recently joined the company after previously serving in the same role at London-based Hutton Energy.

Transerv chairman Charles Morgan thanked Mr Keenihan for his contribution to the company, and welcomed Mr Messina to his new role.

“While the outcome of the Origin sale process is very disappointing for the company and its shareholders, it has demonstrated Transerv’s capability to identify and fund the acquisition of material assets which we will take forward to the next opportunity,” Mr Morgan said.