BG Group secures full control of Pure Energy
BG GROUP’s interest in Pure Energy, the Australian coal seam gas firm, has reached more than 90%, a development which triggers an increase in the UK integrated gas major’s cash takeover bid to A$1.03bn ($721m). Rival bidder Arrow Energy accepted BG’s offer increasing the UK company’s stake in Pure to 90.9% and enabling it to secure full control. At the end of February, BG said it would increase its offer from A$8 to A$8.25 per share on the condition that it acquires a 90% interest in Pure’s ordinary shares. BG is buying Pure to secure gas assets in Queensland that it will use to help feed a liquefied natural gas export facility. The takeover offer was due to close todayday but has been extended to April 6. Under Australian takeover regulations a bidder that secures at least 90% acceptances can compulsorily acquire the remaining shares. BG is paying almost triple the price Pure’s shares were trading at before Arrow launched an initial offer in December. Arrow chief executive Nick Davies said: “In weighing up our options, we concluded that the level of BG’s bid had risen to a point where more value can be achieved for Arrow shareholders by accepting BG’s offer and investing these funds elsewhere.” Pure’s board has agreed to the appointment of three directors nominated by BG with effect from tomorrow.
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