BG's all-cash offer for Pure Energy accepted by Arrow

Arrow Energy Ltd., Brisbane, has accepted BG Group's all-cash offer for its 20.31% holding in fellow-Brisbane coalseam methane company Pure Energy Resources Ltd.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Mar. 24 -- Arrow Energy Ltd., Brisbane, has accepted BG Group's all-cash offer for its 20.31% holding in fellow-Brisbane coalseam methane company Pure Energy Resources Ltd.

Arrow's acceptance brings BG's interest in Pure to 90.93% and the British company will now proceed with the compulsory acquisition of all remaining shares in Pure before the offer closes on Apr. 6.

BG will pay shareholders $8.25 (Aus.)/share because the Arrrow purchase takes it over the 90% threshold.

Arrow accepted BG's offer because the bid had risen to a point where more value could be achieved for shareholders by collecting and reinvesting the funds elsewhere. The company will receive more than $215 million (Aus.) and realize a profit of close to $200 million (Aus.) on the original investment.

Pure Energy has agreed to appoint three directors chosen by BG to its board with effect from Mar. 25. Arrow nominees will retire on the same day.

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