Sharechat Logo

Origin rejects BG Group's A$13.8b hostile takeover bid

Friday 4th July 2008

Text too small?
Origin Energy rejected BG Group's hostile A$13.8 billion takeover bid, saying it had to consider the prospects of an increase in the value of its coal seam gas.

Shares of Origin, which owns 51.4% of Contact Energy, fell 0.3% to A$16.23 - above BG Group's A$15.50 cash per share offer.

Origin's directors "gave careful consideration at the time to all relevant information including information that evidenced an increasing appreciation of CSG (coal seam gas) valuation," chairman Kevin McCann said in a statement.

That included a report showing a "significant increase" in Origin's reserves, higher valuations of rival's reserves and heightened interest in the sector.

Shell Exploration Company B.V. this month signed a preliminary agreement with Arrow Energy Ltd to jointly develop projects to extract clean-burning natural gas from coal deposits in Australia, China, Indonesia, Vietnam and India.

Contact rose 1.6% to NZ$7.83 on the NZX.

BG Group, a UK oil and gas producer, planned to use its own funds and a syndicated loan from a group including Banco Santander, HSBC Bank Plc, Societe Generale and Royal Bank of Scotland.

BG Group wants access to Origin's coal seam gas reserves to supply a liquefied natural gas plant it plans to develop in northern Queensland.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

18th October 2021 Morning Report
T&G Global Limited (NZX: TGG) FY21 Earnings Guidance Update
Arvida Group Limited (NZX: ARV) Successful Completion of $155m Placement
FreshLeaf: Cannabis on course to be 'medicine of the masses'
Arvida Group Limited (NZX: ARV) to Acquire Arena Living Retirement Living Portfolio
My Food Bag Group Limited (NZX: MFB) Market Update and HY Results Announcement Date
Harmoney Corp Limited (NZX: HMY) Delivers Record September Quarter
Vital Healthcare Property Trust (NZX: VHP) Announces Successful Completion of $115m Placement
14th October 2021 Morning Report
General Capital Limited (NZX: GEN) Completes Greenfern Listing