Arrow Energy to acquire Australian gas explorer Bow Energy for A$535 million
28 Sep 2011
Arrow Energy, a joint venture between Royal Dutch Shell and PetroChina, has sweetened its offer for Australian gas explorer Bow Energy by A$15 million, taking its offer to A$535 million from its earlier $520 million.
Brisbane-based Bow today said that it has agreed to Arrow Energy's hiked offer of $1.52 a share in cash from its earlier offer of A$1.48-a-share valuing the company at A$535 million.
Bow said in a statement that its shareholders have been advised to accept the Arrow bid in the absence of a superior offer, subject to an independent expert's opinion, in their best interests.
Bow Energy has eight coal seam gas projects within the Bowen and Surat Basins in Queensland, the same regions where Arrow Energy is producing gas.
Shell and PetroChina had jointly acquired Arrow Energy last year for A$3.4 billion, which gave it a 1.4-per cent stake in Bow through its spin-off Dart Energy. (See: PetroChina, Royal Dutch Shell bid $3 billion for Australia's Arrow Energy)
In August this year, Arrow Energy made an A$520-million bid that was rejected by the board of Bow as being too low.
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