Shell accepts BG offer for Pure Energy shares
Shell has put to rest any rumors that it would challenge BG for ownership of junior coalseam methane firm Pure Energy by accepting BG's latest offer for the Brisbane-based company.
MELBOURNE, Mar. 6 -- Royal Dutch Shell PLC has put to rest any rumors that it would challenge BG Group for ownership of junior coalseam methane firm Pure Energy Resources Ltd. by accepting BG's latest offer for the Brisbane-based company.
Last week BG said it would increase its all-cash offer for Pure to $8.50 (Aus.)/share from $8 if it controls at least 90% of Pure before its bid ends on Mar. 23.
The inducement appears to have convinced Shell to sell its interest in Pure provided no better offer is made. Once the Shell sale is completed, BG would hold just over 40% of Pure.
Pure's other major shareholder, fellow Brisbane company Arrow Energy Ltd., which holds 22% interest, has yet to announce its intentions, however. Arrow has been competing with BG for ownership of Pure and may yet decide to increase its current offer of $3 (Aus.)/share in cash plus 1.57 Arrow shares for each Pure share.