12th May 2008 06:00
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News Release |
12 May 2008
FOR IMMEDIATE RELEASE
Update on BG Group plc proposal to acquire Origin Energy Limited
The following announcement was issued to the New Zealand Exchange at 2300hrs BST (0800hrs AEST)
On 30 April 2008 BG Group plc ("BG Group") made an announcement to the London Stock Exchange and Australian Securities Exchange that it had made a proposal to acquire all of the ordinary shares in Origin Energy Limited ("Origin"), a company listed on the ASX.
Origin owns 51.36% of the ordinary shares in Contact Energy Limited ("Contact"), a company listed on the NZX.
BG Group updated the ASX on its proposal to Origin on 09 May 2008.
New Zealand Takeovers Panel
BG Group made an application to the New Zealand Takeovers Panel (the "NZTP") for an exemption from rule 6(1) of the New Zealand Takeovers Code (the "Code") in relation to the proposed upstream acquisition of Origin.
BG Group has been notified by the NZTP that the Panel has decided to grant an exemption from any requirement to make an immediate takeover offer for Contact or obtain Contact shareholder approval as a condition of the Origin transaction. It is a condition of that exemption that, if the proposed acquisition of Origin is successful, BG Group make a follow-on offer.
The following would apply to any such follow-on offer:
The NZTP would require BG Group to make a cash bid for Contact within one month of the offer becoming unconditional;
That bid would have to be at the value per share attributed to Contact by BG Group in the price payable for Origin shares;
That value would be verified by a NZTP-approved independent expert; and
If, at the time of BG Group's successful acquisition of Origin, Origin's shareholding in Contact is 20% or below, then the Code would not apply. If the Code were not applicable, then BG Group would not need to rely on the exemption and would not be obliged to make a follow-on offer.
The Board of BG Group, when fixing the proposed price of A$14.70 for the acquisition of Origin shares, did not attribute any premium to the market price of Contact shares.
BG Group has not yet made any application to the OIO.
Ends.
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.
Notes for Editors
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 is being advised by Goldman Sachs International and Gresham Advisory Partners.
Enquiries:
Communications Australia: + 61 (0) 419 588 166
+ 44 (0) 7917 185702
Communications UK: +44 (0) 118 929 3717
Out of hours UK media mobile: +44 (0) 791 718 5707
Investor Relations: +44 (0) 118 929 3025
Website: www.bg-group.com
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