BG moved closer to buying Australian coalbed methane (CBM) gas producer Pure Energy Resources for A$1.03 billion ($673 million) after rival bidder Arrow Energy decided to let its offer lapse.
‘Arrow said today that it will not proceed with the compulsory acquisition of the shares it does not own in Pure, after its cash and stock offer lapsed on Friday. Arrow built up a stake of 20.31% in Pure at the end of the offer price, though it already owned 19.9% of Pure through a pre-initial public offering investment. Last month, BG raised its cash offer for Pure to A$8.25 per share, if it received 90% shareholder acceptance for its offer. BG has received about 33% acceptance for its offer and has declared its offer final in the absence of a superior proposal. “Arrow’s offer is now dead, all that is left now for them to do is to accept the offer from BG,” one source with the direct knowledge of the matter told Reuters. The source was not authorised to speak to media. “They will ultimately tip into the offer,” the source said. Royal Dutch Shell, which owns 11.2% of Pure, has also agreed to accept BG’s offer, which would boost BG’s holding to about 45%.