Australian-based liquefied natural gas group, Arrow Energy, said on Monday that it has received a takeover bid worth A$3.3 billion Australian dollars (US$3 billion) from Royal Dutch Shell and PetroChina.
Arrow said in a statement to the Australian Stock Exchange that it has received a non-binding indicative proposal of AU$4.45 per share plus a share in a new entity comprised of Arrow's international business.
The company has appointed financial and legal advisers to look at the proposal and advises shareholders to take no action at the moment.
Shares in Arrow Energy ended the day up 47 per cent at $5.11.
Arrow is an integrated energy company focused on supplying coal seam gas to eastern Australia and Asia and claims to have the largest coal seam gas reserves in Queensland state.
Analysts said Shell and PetroChina want to buy Arrow to increase their coal seam gas – also known as LNS - supplies to China. LNS gas is converted into liquid form through cooling, which makes it easier and cheaper to transport by sea.
Arrow had been planning to list 20 percent of its Arrow International arm, retaining 70 percent, with the remainder already held by Royal Dutch Shell.
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