4th Jul 2008 07:00
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BG Group Media Statement |
4 July 2008
BG Group bid for Origin Energy Limited - Update
BG Group notes the announcement and presentation made today by Origin Energy Limited ("Origin" - ASX:ORG). BG Group is currently finalising its Bidder's Statement which BG Group expects will be lodged with the Australian Securities and Investments Commission (ASIC) within the course of next week.
BG Group Chief Executive Frank Chapman said: "We note that Origin has provided some information to shareholders in response to the issues raised in our announcement on 24 June, 2008. BG Group's all cash offer of $15.50 per share represents a substantial premium to the undisturbed share price and full and fair value for Origin shareholders."
"It remains the case that Origin must spend a significant amount of time and money to prove up its coal seam gas (CSG) potential. Origin continues to lag its competitors in the exploration and appraisal of its CSG acreage."
"In relation to reversion rights, Origin provided very little new information today. In our view, Origin has still not fully explained the impact on value and capital expenditure associated with these substantial third party interests."
"Origin has not yet addressed the very significant risks for shareholders inherent in any alternative proposals to monetise its gas resources. Nor, in rejecting BG Group's bid, has Origin indicated with any degree of certainty that any of those alternatives could generate higher value for shareholders when compared against BG Group's all-cash offer."
"Our offer is not focused solely on Origin's coal seam gas resources. We wish to retain and invest in all of Origin's businesses in Australia - from gas resources and power generation through to retail gas and electricity marketing. However, access to Origin's resources is not a prerequisite for the delivery of any current or future export commitments within our global portfolio, all of which can be met comfortably from our existing supply arrangements."
"Contrary to the assertions made today, the terms and conditions of our offer conform to market practice and are appropriate for a cash bidder seeking to preserve the assets and capital of the company it intends to acquire."
"Our offer provides certain cash value for shareholders without ongoing risks. We look forward to engaging with shareholders again after the lodgment of our Bidder's Statement."
Ends.
Notes for Editors
About BG Group
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in 27 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.
Details of BG Group's strategy and achievements can be found at:
http://www.bg-group.com/OnlineReports/ara/index.html
Contacts
Communications Australia:
+61 (0) 2 8284 9901 - John Hurst
+61 (0) 419 588 166 - Rob Millhouse
Investor Relations:
+44 (0) 7860 592727 - Chris Lloyd
+44 (0) 118 929 3025 - Siobhan Andrews/Damien Bird
Communications UK:
+44 (0) 118 929 3508 - Edel McCaffrey/Jo Thethi
+44 (0) 118 929 3110
Out of hours UK media mobile:
+44 (0) 791 718 5707
There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to the Company's annual report and accounts for the year ended 31 December 2007. The Company does not undertake any obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
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