The planned creation of a new Australian mid-cap oil and gas producer is set to go ahead after shareholders in Drillsearch Energy approved the company's all-scrip merger with Beach Energy.
The proposed merger gained strong support, with around 99% of votes cast in favor of the offer of 1.25 Beach shares for every one held in Drillsearch.
The deal is expected to be completed in March.
"The support shown today by Drillsearch shareholders is further evidence of the compelling nature of this transaction," Beach Energy Acting CEO Neil Gibbins said in a statement Wednesday.
At current share prices, the merged company would be capitalized at around A$720 million ($502 million), down from A$1.2 billion when the proposal was announced in October.
It would have annual production of 12.1 million barrels of oil equivalent.
Beach and Drillsearch's core oil and gas assets are held in central Australia's onshore Cooper Basin.
The synergies and cost savings to be realized from the combination of the two companies are estimated at around A$20 million annually on a pre-tax basis, which would be achieved within two years of implementation.
