10/02/2009 - 08:54

Pure Energy shares surge on BG bid

10/02/2009 - 08:54

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Perth-headquartered Pure Energy Resources shares have surged as much as 29 per cent after BG Group launched a $796 million takeover bid for the coal seam gas explorer.

Pure Energy shares surge on BG bid

Perth-headquartered Pure Energy Resources shares have surged as much as 29 per cent after BG Group launched a $796 million takeover bid for the coal seam gas explorer.

UK-based BG Group is offering $6.40 cash per share, trumping a bid from gas producer Arrow Energy, as it seeks to increase its footprint in Queensland's coal seam gas market.

Pure Energy shares,which were yesterday placed in a trading halt, surged $1.37, or 25.9 per cent to an early high of $6.65 before easing to $6.57 by 1040 AEDT.

Increasing energy demand has attracted several large international players into the coal seam gas sector, as they seek to develop liquefied natural gas projects for export to Asian markets.

BG Group acquired coal seam gas producer Queensland Gas Company (QGC) through a $4.88 billion takeover last year after losing out in a hostile attempt to purchase Origin Energy Ltd for $13.8 billion.

Arrow launched its bid in December, offering 1.21 shares and $2.70 in cash. The big was recommended by the Pure Energy board.

The company has about a 19.98 per cent interest in Pure Energy, while its coal seam gas partner Royal Dutch Shell holds about 14.88 per cent.

BG Group has already acquired about ten per cent of Pure Energy.

 

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