China energy firm Landbridge bids $145 mln for Australia gas company WestSide

SYDNEY, March 10 (Reuters) - Chinese diversified energy company Landbridge Group Co Ltd has launched an A$160 million ($145.24 million) unsolicited bid for Queensland coal seam gas company WestSide Corp Ltd WCL.AX , to gain entry into northern Australia's fast-growing gas industry.

Landbridge target WestSide owns the Meridien CSG field in Queensland state, where three large Liquified Natural Gas (LNG) projects are being built and are due to begin operating over the next two years.

Analysts fear the projects may face a shortage of gas from the main Bowen gasfields, forcing them to look for supplies from other producers like WestSide.

Landbridge's proposal for WestSide comes 10 months after state-owned PetroChina Co Ltd 601857.SS withdrew a higher, A$185 million bid on grounds that "the general situation in Australia has changed so much".

PetroChina did not elaborate, but the decision came as all three LNG projects faced cost blowouts due to technical difficulties and a high Australian dollar.

In a statement on Monday, Landbridge said it was taking its offer direct to WestSide shareholders after first approaching the Australian company with a confidential, non-binding proposal on Feb. 7.

"WestSide has not been willing to engage in any meaningful discussions around our indicative offer price," Landbridge said in a statement, adding it remained open to discussion toward reaching a deal recommended by the board.

WestSide shares, which hit a year low of A$0.13 in June shortly after PetroChina aborted its bid, rose as much as 19 percent on Monday to close at A$0.295.

Shandong Province-based Landbridge said it will pay A$0.36 a share for WestSide, a 38 percent premium to the stock's closing price on Friday. In January last year, PetroChina offered A$0.52 a share.

"Our offer provides compelling and certain value for WestSide's shareholders at a time when there is significant illiquidity in Westside shares and uncertainty over (the) funding and development pathway for WestSide's assets," Landbridge chairman Ye cheng said in the statement.

WestSide said it was reviewing the bid, which was "highly conditional".

Any deal would be subject to regulatory approval both in China and Australia. ($1 = 1.1016 Australian dollars)

(Reporting by Byron Kaye; Editing by Christopher Cushing)

((byron.kaye@thomsonreuters.com)(+612 9373 1815))

Keywords: LANDBRIDGE WESTSIDE/MERGERS