ARROW TAKEOVER ON TARGET

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.

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Australian Millennial managers look to offshoring to solve global talent shortage problem
Partner Content
New research reveals that more than half of Australia’s next-gen leaders are cons...
Cloudstaff
Advertisement

Related Stories

Fintech Paypa Plane to double team size after securing $10m in Series A backed by Mastercard

Fintech Paypa Plane to double team size after securing $10m in Series A backed by Mastercard

Brisbane-based cloud payments software provider Paypa Plane has rai...

What can we learn from the collapse of Porter Davis Homes Group?

What can we learn from the collapse of Porter Davis Homes Group?

Today was a dark day for the Australian construction industry with ...

Infrastructure builder Lloyd Group goes bust amidst "eroded project margins"

Infrastructure builder Lloyd Group goes bust amidst "eroded project margins"

After 44 years in business as a family company that started in Melb...

Another home builder collapses as Porter Davis calls in liquidators

Another home builder collapses as Porter Davis calls in liquidators

A home builder that was forecasting $555 million in revenue this fi...