BG wants Pure Energy

UK oil and gas company, BG Group, has launched a A$796m (£360m) takeover bid for Australian coal gas seam group, Pure Energy Resources.

The all-cash offer is worth A$6.40 per share and trumps a previous A$5.39 offer announced by Arrow Energy in December.

The Reading-based group said that it has acquired an interest in around 10 per cent of Pure shares from a range of shareholders. Arrow’s offer is subject to a 90 per cent minimum acceptance condition. BG Group said it won’t accept the Arrow offer as it does not intend to own shares in Arrow.

David Maxwell, senior vice president of QGC, a BG Group business, said: ‘BG Group is offering Pure shareholders a significant premium to the Arrow offer. Our offer conveys full and fair value to Pure shareholders for assets that complement QGC’s acreage. Importantly, our offer is all cash and is subject to minimal conditions.’

The acquisition is expected to strengthen the group’s presence in Australia’s coal gas seam industry and will be based on a minimum acceptance of 50.1 per cent and Foreign Investment Review Board (FIRB) approval.