17th Feb 2009 07:00
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News Release |
17 February 2009
BG Group's all-cash offer for Pure increases and goes unconditional
The following announcement was issued to the Australian Securities Exchange (ASX) at 2248hrs GMT, 16 February 2009 (0948hrs EDT, 17 February 2009)
BG Group ("BG Group" - LSE: BG-L) announces that it has increased its all-cash takeover offer for Pure Energy Limited ("Pure" - ASX: PES) to A$8.00 per share, valuing the entire issued share capital of Pure at approximately A$995 million.
BG Group also announces that its offer for Pure is now unconditional.
BG Group's unconditional offer is significantly superior to the revised offer for Pure announced by Arrow Energy Limited (Arrow - ASX: AOE) on 11 February 2009 (the "Arrow Offer").
BG Group's unconditional offer is significantly superior to the Arrow Offer
BG Group's unconditional offer provides Pure shareholders with an opportunity to sell their shares for A$8.00 cash.
The Arrow Offer comprises A$3.00 in cash and 1.57 Arrow shares for each Pure share, meaning that the value of the Arrow Offer is uncertain and will vary according to the price of Arrow shares. BG Group's all-cash offer therefore eliminates a number of risks including:
Arrow's reliance on a third party to commercialise its coal seam gas (CSG) through the design, construction and successful commissioning of an LNG project;
The risk that Arrow may not be able to commercialise its CSG reserves for many years if the proposed LNG project does not proceed or is delayed; and
BG Group's all-cash offer is unconditional
BG Group confirms that it has received notification from the Foreign Investment Review Board that there are no objections in terms of the Federal Government's foreign investment policy to the proposal by BG Group to acquire all the issued shares in Pure.
All other conditions have been waived by BG Group.
BG Group's increased offer provides swift settlement terms
BG Group's increased offer also provides swift settlement terms, with payment despatched to accepting Pure shareholders on or before 5 business days after the receipt by BG Group of their acceptance.
Indicative timing of BG Group's increased offer
BG Group expects to lodge its supplementary and replacement Bidder's Statement with the Australian Securities and Investments Commission (ASIC) today.
BG Group will request the Pure board's consent to early despatch of its replacement Bidder's Statement to Pure shareholders so that Pure shareholders have the opportunity to review BG Group's increased offer as soon as possible.
In the meantime, Pure shareholders who wish to review BG Group's increased offer can obtain a copy of the replacement Bidder's Statement lodged with ASIC by visiting www.bg-group.com/pure
Further information
Pure shareholders with questions relating to BG Group's offer can call the BG Group Offer Information Line on 1800 135 831 (toll-free within Australia) or +61 2 8268 3679 (for callers from outside Australia).
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. BG Group owns 99.89% of QGC, a Queensland based company (see below). For further information visit: www.bg-group.com
About QGC
QGC (ASX: QGC) is a leading and award-winning Australian integrated energy business with a strategy focused on developing its world-class coal seam gas reserves in the Surat Basin for domestic supply, power generation and export as LNG. Founded in 2000 as an explorer, QGC now employs more than 300 staff. QGC, already a supplier of natural gas to the Australian domestic market, is developing further domestic supply in addition to the Queensland Curtis LNG Project. For further information visit: www.qgc.com.au
Contacts
Communications Australia
+61 (0) 417 797 419 - Hedley Thomas
+61 (0) 2 8284 9901 - John Hurst (Cannings)
Communications UK
+44 (0) 118 929 3110 / 3508 / 2462
+44 (0) 791 718 5707 - Out of hours media mobile
Investor Relations
+44 (0) 118 929 3025
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 BG Group plc's annual report and accounts for the year ended 31 December 2007. BG Group plc 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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