Duo get approval for Arrow takeover
Release Date: 2010-07-30
Shell and PetroChina have received the final approval needed to complete their A$3.5 billion (US$3 billion) cash takeover of Australian coalbed methane gas company Arrow Energy.Australia's Federal Court of Australia gave its approval to the deal, which will see Shell and PetroChina’s joint venture company CS CSG buy 100% of the shares in Arrow’s Australian business, and the demerger of Arrow’s international assets into a new company called Dart Energy.
CS CSG has agreed to pay A$4.70 in cash per share for all of Arrow’s shares. Arrow shareholders approved the proposal on 14 July.
All necessary conditions have been satisfied, and the deal will be implemented on 23 August 2010.
Russell Caplan, Shell’s Australian chairman, said: “Shell and PetroChina bring the LNG expertise and deep access to markets and capital needed for a large-scale, long-life integrated CSG-to-LNG project. This joint venture will become an important growth asset for Shell and help meet growing demand for cleaner energy in Australia and international markets.”
Bo Qiliang, vice president of PetroChina, said: “PetroChina welcomes this opportunity to invest in Australia, and we are pleased with the Federal Court’s decision to approve the acquisition. LNG is an important source of clean energy for China, and PetroChina sees this joint venture as a significant commitment to progressing towards an integrated CSG and LNG business in Queensland.”
| Type: | NORMAL |
| Url: | http://www.upstreamonline.com/live/article224375.ece |