£2 bn takeover of Queensland Gas

Source: Exec Digital UK

Date :27/10/2008 14:25:41

BG Group, a FTSE 100 company, is holding final talks and negotiations with AGL to buy the company’s 25 percent stake in Queensland Gas.

The move will strengthen the company’s position before making a bid for the entire business for an estimated A$5 billion, or £2 billion.

BG has already bought a 20 percent stake in Queensland Gas’s coal-seam operations, and a 9.9 percent stake in the whole company. BG is said to be strengthening its base in Australia to better serve its Asian markets – where the company sells the majority of its liquefied gas.

The BG Group has recently dropped Goldman Sachs and hired JP Morgan to help with the negotiations. It is expected that an offer for the whole company could be made as soon as today, Monday, October 27.

BG shares were down 8.72 percent at 654.50 GBp.