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BG leads the field in race for Oz gas buy
09.02.09
Energy giant BG Group has offered to buy Pure Energy Resources for A$796 million (£359 million), topping a rival offer from Arrow Energy, Royal Dutch Shell's partner in Australian coal-seam gas.
BG has bought about 10 per cent of Pure Energy's shares and said it does not plan to sell into Arrow's offer, effectively blocking Shell from gaining full control of the target. The cash offer of A$6.40 a share is about 19 per cent higher than the market price.
BG and Arrow are among companies seeking more reserves to feed planned liquefied natural gas projects. BG bought Queensland Gas last year after it failed in a bid for Origin Energy.
Origin rejected BG's offer in favour of selling 50 per cent of its coal-seam gas reserves to ConocoPhillips at a price that implied a much higher value to Origin.
Shareholders had accepted Arrow's offer subject to there being no higher bid.
Coal-seam gas interests in Australia have attracted some of the world's biggest energy players, with the industry attracting investment of more than A$17 billion to the country last year.
