BG Group Ups the Ante in All-Cash Offer for Pure Energy

BG Group has increased its all-cash takeover offer for Pure Energy Limited 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 on February 11, 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
  • Arrow's reliance on markets in certain developing countries to deliver its international expansion strategy.

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 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.

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.



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