8th Apr 2015 06:09
LONDON (Alliance News) - FTSE 100-listed oil and gas companies Royal Dutch Shell PLC and BG Group PLC on Wednesday said they have reached an agreement on a cash and shares takeover of BG by Shell, valuing BG at around GBP47 billion.
Under the terms of the deal, BG shareholders will get 383 pence in cash plus 0.4454 Shell B shares per BG share. Based on the 90 trading day volume weighted average price of 2,170.3 pence per Shell 'B' Share on April 7, the total value of the deal is 1,350.00 pence per BG share.
BG shares closed at 910.4 pence on Tuesday. BG said the price represents a premium of around 50% to its closing price on Tuesday.
"This is an important transaction for Shell, accelerating the delivery of our strategy for shareholders. The result will be a more competitive, stronger company for both sets of shareholders in today's volatile oil price world," said Jorma Ollila, Shell's Chairman.
"The offer from Shell delivers attractive returns to shareholders and has strong strategic logic. BG's deep water positions and strengths in exploration, liquefaction and LNG shipping and marketing will combine well with Shell's scale, development expertise and financial strength," said BG Group Chief Executive Helge Lund.
"The consolidated business will be strongly placed to develop the growth projects in BG's portfolio. The transaction will take time to complete, during which my team and I will remain committed to BG and our shareholders, and to safely delivering our 2015 business plan," Lund added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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