Australia’s Arrow Energy has accepted an improved takeover bid from Royal Dutch Shell and PetroChina worth a reported AU$ 3.44 billion (US$ 3.14 billion). The takeover is subject to approval by Arrow shareholders and Australian authorities.
Earlier this month, Arrow rejected an initial bid of US$ 2.96 billion. However, the company’s board agreed to the improved bid after Shell and PetroChina raised their initial offer by 6% to US$ 4.70/share.
Arrow controls the largest coal seam gas acreage in Australia, as well as assets in Asia.
An exciting opportunity
Arrow chairman, John Reynolds, said: “This transaction crystalises the value of more mature assets that have been built in Arrow's Queensland business through the rigorous execution of our business strategy. In addition, we are creating an exciting opportunity for Arrow Energy shareholders to continue to participate in a portfolio of earlier-stage development assets in Australia and the broader Asian region.”
As part of the agreement, Shell and PetroChina announced that Arrow’s international assets, including projects in China, Indonesia, India and Vietnam, will go into a new company: Dart Energy. This company will be listed on the Australian stock exchange and shareholders will receive one share in Dart Energy for each share held in Arrow Energy.
Arrow Energy CEO, Nick Davies, said: “Dart Energy, with its portfolio of assets, and strong funding position has the opportunity to become a leading global coal seam gas company. The existing portfolio of assets and additional opportunities we have in the pipeline provide a great platform to replicate our Queensland success.”
In a separate statement, Malcolm Brinded, Royal Dutch Shell’s executive director of the Upstream International business, said: “The new joint venture will be an important growth asset for Shell, and help meet growing demand for cleaner energy in Australia and international markets.”
Arrow Energy plans to take the proposal to shareholders in mid-July, with the intention to implement the new scheme in August.
Read the article online at: https://www.worldcoal.com/coal/22032010/arrow_energy_accept_improved_takeover_bid/