ARROW TAKEOVER ON TARGET

Written on the 13 April 2010

ARROW TAKEOVER ON TARGET

ARROW Energy Limited (AOE) is one step closer toward takeover after it recommended shareholders back a $3.44 billion deal from Royal Dutch Shell and PetroChina, after a 5.6 per cent rise on the previous offer.

If shareholders agree to the scheme they will be given $4.70 per share plus a stake in new entity Dart Energy Limited, to be listed on the ASX after a demerger of 90 per cent of international assets.

Dart Energy will be led by the current Arrow management team and will also include the company’s 21 per cent stake in Apollo Gas Limited (AZO), a 7.5 per cent stake in Liquefied Natural Gas Limited (LNG) and 1.4 per cent in Bow Energy Limited (BOW).

Arrow Energy chairman John Reynolds, says the transaction ‘crystallises’ the value of the company’s Queensland assets, which have matured through rigorous execution of its business strategy.

“In addition, we are creating an exciting opportunity for Arrow Energy shareholders to continue to participate in a portfolio of earlier-stage development assets in Australia and the broader Asian region,” says Reynolds.

“That company will be led by the same management team that successfully grew Arrow Energy into a major Australian energy company.”

CEO Nick Davies (pictured), says Dart has the opportunity to become a leading coal seam gas company, given its portfolio of assets and a strong funding position.

“The existing portfolio of assets and additional opportunities we have in the pipeline provide a great platform to replicate our Queensland success,” says Davies.

“We look forward to continuing the journey with existing Arrow Energy shareholders.”

Scheme booklets are expected to be sent out in early June, with the implementation of the acquisition expected early August.


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter