CORPORATE activity in the energy sector picked up a notch this week when acquisitive BG Group launched a $796 million cash offer for South Perth-based Pure Energy Resources.
CORPORATE activity in the energy sector picked up a notch this week when acquisitive BG Group launched a $796 million cash offer for South Perth-based Pure Energy Resources.
CORPORATE activity in the energy sector picked up a notch this week when acquisitive BG Group launched a $796 million cash offer for South Perth-based Pure Energy Resources.
The takeover offer comes as first suitor Arrow Energy prepares to formally open its bid for Pure Energy, which has recommended the offer to shareholders.
UK-based BG Group, which holds about a 10 per cent interest in Pure Energy, is offering $6.40 cash for each share in a bid to increase its footprint in Queensland's coal seam gas sector.
The offer is a 19 per cent premium to the implied value of Arrow's offer of $5.39 per share.
Arrow is offering 1.21 of its shares and $2.70 cash for each Pure Energy share.
Pure Energy has told its shareholders to take no action on either bid until it has had time to review both offers.
Previously, Pure Energy directors said they would accept the offer.
Last year, BG Group bought coal gas producer Queensland Gas Company for $4.9 billion after losing out in its attempt to purchase Origin Energy for $13.8 billion.
BG Group's offer is subject to Foreign Investment Review Board approval and has a 50.1 per cent minimum acceptance condition.
COMET RIDGE
DIRECTORS in oil and gas explorer, Comet Ridge, have unanimously recommended a friendly merger with unlisted public company Chartwell Energy, which has coal seam gas assets in New Zealand.
Both companies have signed a merger implementation agreement, where Comet will issue about 128 million shares to acquire all the shares in Chartwell.
Mt Pleasant-based Comet said it represents 5.15 of its shares for each Chartwell share.
Comet will also receive $1 million from Chartwell through a convertible note prior to the completion of the merger.
The make-up of the combined entity will consist of Chartwell holding a 55 per cent stake and the balance held by Comet shareholders.
The merged entity will have about $8 million in cash and have assets in NZ, Australia and the US.
On completion of the merger, Chartwell representatives James McKay, Chris Pieters and Tor McCaul will join the board of Comet.
Comet directors Gill Swaby and Jeff Schneider will remain while Andy Lydyard and Gary Drobnack will resign.