9th Sep 2008 07:11
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News Release |
9 September 2008
BG Group not to extend takeover bid for Origin Energy
BG Group plc ("BG Group" - LSE: BG.L) has announced that it does not intend to extend the period of its offer to acquire all of the issued shares in Origin Energy Limited ("Origin" ASX:ORG). BG Group will not increase the offer price or waive any of the offer conditions prior to the expiry of the offer period, and BG Group therefore expects that its offer will lapse with conditions unsatisfied on 26 September 2008. This follows the announcement by Origin and ConocoPhillips (NYSE:COP) on 8 September 2008 of a coal seam gas (CSG) to liquefied natural gas (LNG) joint venture.
BG Group Chief Executive Frank Chapman said: "The price implied by this newly-announced joint venture is higher than BG Group is able to justify. We have therefore decided not to extend or amend our offer, which we expect will now lapse. We remain firmly committed to Australia and our existing LNG joint venture with QGC, which is progressing well."
"We wish Origin and ConocoPhillips every success with their joint venture."
The BG Group Shareholder General Meeting, scheduled for 16 September 2008, will no longer take place.
Origin shareholders who accepted BG Group's takeover offer will retain their Origin shares if the offer lapses as expected on 26 September.
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, 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.
On 24 July 2008, BG International (AUS) Investments 1 Pty Limited, an indirectly wholly owned subsidiary of BG Group, announced an offer to acquire all of the ordinary shares of Origin Energy Limited at a price of A$15.50 cash per share.
Contacts
Communications UK:
+44 (0) 118 929 3508 - Edel McCaffrey
+44 (0) 118 929 3110 - Jo Thethi
Communications Australia:
+61 (0) 2 8284 9901 - John Hurst
+61 (0) 419 588 166 - Rob Millhouse
Out of hours UK media mobile:
+44 (0) 791 718 5707
Investor Relations UK:
+44 (0) 118 929 3025 - Siobhan Andrews/Damien Bird
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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