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.
Showing posts with label coal gas. Show all posts
Showing posts with label coal gas. Show all posts
Monday, March 22, 2010
Monday, March 8, 2010
Arrow Energy Receives $3.3 Billion Takeover Bid
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.
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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