Australia's Arrow Energy Ltd agreed to a takeover offer from Royal Dutch Shell and PetroChina.
A fresh offer was made of A$4.70 a share plus one share in a new listed company called Dart Energy and values Arrow at A$3.4 billion ($3.1 billion) in return for most of its Australian assets. Arrow 's Managing Director Nick Davies told reporters on Monday he was "reasonably confident" that shareholders would approve the revised offer.
Dart will contain Arrow’s Asian exploration assets and some of its Australian assets.
The new bid will give China its first stake in Australia's coal-seam gas industry and followed two weeks of talks after Shell and PetroChina made an offer that investors considered too low.
The takeover needs approval from Australia's Foreign Investment Review Board, which is likely to study it closely after regulators said they wanted to cap state-owned companies' stakes in Australia's top resource firms to 15 percent.
Disappointed investors, mostly hedge funds expecting a bigger offer, sold the shares, which were down 3.6 percent to A$5.10.
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