BG Group closes in on Queensland Gas

BG International (AUS) Investments will proceed with its $3.4 billion buyout of Australian gas producer Queensland Gas Co. after boosting its interest to more than 90% of the company.

Uchenna Izundu
International Editor

LONDON, Nov.19 -- BG International (AUS) Investments Pty. Ltd. will proceed with its $3.4 billion buyout of Australian gas producer Queensland Gas Co. Ltd. after boosting its interest to more than 90% of the company. The deal will bolster its LNG position in the Asia-Pacific region.

BG International, a wholly owned subsidiary of BG Group, agreed to pay $5.75 (Aus.)/share—an 80% premium to Queensland Gas's last traded price—and it will buy the outstanding shares it does not already own (OGJ Online, Oct. 29, 2008).

The compulsory acquisition will close before Dec. 15, which is when the offer period expires unless extended.

BG said if Queensland Gas shareholders had not sold their shares after issuing the compulsory acquisition notice it would pay them 1 month later instead of the 3 business days expected.

In September BG Group abandoned its hostile takeover of Australia's second-largest power retailer, Origin Energy, after ConocoPhillips offered to set up a $9.6 billion (Aus.) joint venture with the company—a value almost twice BG's price.

Contact Uchenna Izundu at uchennai@pennwell.com.

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