The Board of Arrow Energy is advising shareholders to accept the revised cash offer from Shell and PetroChina
March 22, 2010
A significant player in Queensland’s coal seam gas (CSG) industry looks destined for foreign ownership, with Arrow Energy accepting a takeover
bid from a company jointly owned by Royal Dutch Shell and PetroChina.
In a company statement issued today, the Board of Arrow is recommending shareholders to take up the cash offer of $4.70 per share (an upward revision from an earlier $4.45 per share offer) from CS CSG (Australia).
This cash component alone represents a 35 percent premium to both the last closing price and one month volume weighted average price prior to March 8 (date of original non-binding, indicative and conditional proposal from CS CSG).
Under the deal, shareholders would also receive one share in newly listed entity Dart Energy, created from a demerger of Arrow Energy’s international business and certain Australian assets.
Arrow Chairman John Reynolds has spoken out in support of the recently announced offer.
“This transaction crystallises the value of more mature assets that have been built in Arrow’s Queensland business through the rigorous execution of our business strategy,” Reynolds says.
“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. That company will be led by the same management team that successfully grew Arrow Energy into a major Australian energy company,” he says.
