Arrow accepts Shell offer after China OKs deal
Release Date: 2010-07-15
SHELL and PetroChina have succeeded in their joint takeover Arrow Energy for $4.70 a share, after Chinese authorities approved the deal.The vast majority of coal-seam gas developer Arrow's shareholders (99.26 per cent) voted yesterday to accept the offer of $4.70 a share from CS CSG (Australia) Pty Ltd, a 50/50 joint venture company owned by Shell and PetroChina.
The shareholders also approved the demerger of Dart Energy, which will hold Arrow's international businesses and selected domestic assets, and list on the ASX as a separate company.
Under the demerger agreement, shareholders will also receive one share in demerged entity Dart Energy Ltd for every two Arrow shares they hold.
Implementation of the demerger and acquisition schemes remains subject to approval from the Federal Court of Australia.
The Federal Court is expected to hear the demerger matter tomorrow and the share acquisition matter on July 29.
If the acquisition is completed, CS CSG will own both Arrow's Queensland coal seam gas assets and domestic power business, as well as Shell's Queensland coal seam gas assets and interests in the LNG project on Curtis Island at Gladstone.
Arrow said yesterday the final bidder conditions had been satisfied when the National Development and Reform Commission of China approved the takeover bid and a waiver was received from the State Administration of Foreign Exchange of China.
"Shell and PetroChina intend to invest the funds required to further develop Queensland's CSG to LNG industry and progress towards a world-scale LNG plant on Curtis Island, subject to a final investment decision," the companies said in a joint statement.
Arrow's directors had unanimously recommended the deal to shareholders, saying it aligns with their intention to separate domestic and international strategies, mitigates risk in a balanced way, and builds ongoing value into the future.
Arrow shares closed 2c higher at $4.99.
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