Junior oil and gas explorer Apollo Gas Ltd has agreed to be taken over by coal seam gas project developer and Arrow Energy Ltd-spin off Dart Energy Ltd.
Dart said in a statement on Tuesday that Apollo's independent directors had unanimously recommended the proposal in the absence of a better offer.
The all-scrip deal comprises three Dart shares for every four Apollo shares held and three comparable Dart options for every four Apollooptionsheld.
Dart said this gave the target a total implied consideration value of 79 cents per share.
At 1250 AEST, shares in Apollo and Dart were untraded at 61 cents and $1.05, respectively, after emerging from a trading halt entered into on Tuesday morning, before the proposed deal was announced.
The offer attributes an enterprise value to Apollo of $145 million